How to assess financial risk for a project

[samkapoor77]

My boss has entrusted me with a responsibility of assessing financial risk for a project abroad and I am not getting anything. What should I do?

[Sameer Kapoor]

Financial risk is a broad term and involves multiple risks associated with financing and investing. It includes asset backed risk, credit risk, liquidity risk, foreign investment risk and market risk. Since you have to assess the financial risk of a project abroad, it will also involve country risk. I will suggest you to get acquaint with these risks, study the tools and methods used in their assessment and thereafter strategies to deal with them.

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