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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.

 

Financial Risk Modeling

Additional Questions and Answers

CFI is 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:

Analyst Certification Program

Example Excel Model

Below is a screenshot from one of CFI’s online analyst training and certification courses, offered 100% online.

To learn How to Build an Excel Model step-by-step, click on the image below.

financial modeling questions and answers