Risk Assessment

• Mon Delcreda offers the following professional financial analyses and assessments for your business: 

1. External risk assessment

Determines the external environment and its influence on business operations

2. Internal risk assessment

Determines management resources, in other words, the internal environment and its influence on business operations

3. Business risk assessment

Evaluates the internal and external risk assessments for business operations 

4. Default analysis

This analysis calculates the potential scenario where total assets could be lower than total liabilities using a mathematical model. It helps evaluate the probability of profit becoming negative.

5. Financial capacity assessment

Financial capacity is evaluated based on financial ratios derived from balance sheets and income statements. The parameter calculations of indicators are developed using an econometric method and each industry is different. The total sum of all indicators determines the financial capacity. Fitch categorization is used for the figures of these tables.

6. Investment opportunity assessment

Business risk and default risk are assessed in the previous sections. In addition to this, liquidity risk and solvency risk are evaluated. These indicators can be used to conduct a comprehensive investment opportunity assessment.

7. Stress test analysis

This test determines how financial operations could be affected when management resources shift to unwanted conditions if influenced by external factors

8. Cash flow analysis

This analysis determines how cash flow can affect business operations depending on revenue, expenses and investment and how financial ratios might change during the next year.

9. BEP analysis

A break-even point (BEP) analysis determines the point where a company’s profits are equal to that of its costs. It looks at the level of fixed and variable costs relative to the profit earned by each additional unit produced and sold.

10. Risk assessment

Business operations risk, its attributes, default, financial capacity, investment opportunities and cash flow analysis are made based on the company’s balance sheet and income statements. A comprehensive risk assessment on business operations is made using these analyses.