risk analysis

risk analysis definition - finance
The process of determining whether an investment or business decision is worth the financial risk involved. Risk analysis for securities portfolios involves using a variety of statistical techniques and other methods to judge how steep losses could be if certain events occur. Companies conduct risk analysis of their information technology systems, building in safety, employee safety, and data safety costs. Numerous systems are used to conduct risk analysis.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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