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.
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:
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