Financial Risk Modeling

What Is Financial Risk Modeling?

Financial risk modeling is the process of determining how much risk (measured in volatility) is present in a particular business, investment, or series of cash flows. The process also includes assessing which independent variables make the greatest impact on dependent variables in a model. Financial analysts will attempt to model risk as a means of comparing the attractiveness of different investment opportunities.

Example Excel Model

Below is a screenshot from one of CFI’s online analyst training and certification courses.  To how how to build an excel model step-by-step, click on the image below.

financial modeling questions

Additional Questions and Answers

CFI is a the official global provider of financial modeling and valuation analyst FMVA Designation. CFI's mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way. In order to become a great financial analyst, below are some additional questions and answers for you to explore further:

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