What is risk analysis?
Risk analysis is all about making a calculated decision.
It involves weighing up in your own judgement whether or not the prospect on paper is actually ‘safe’ for you to place your investment in.
Understanding risk analysis
Risk analysis plays a very important part of the investment decision roadshow.
It tempers the whole layup with some reality.
Some ‘what if?’ cold water.
Every important decision ought to be met with a little moderation.
Even (or especially) your poultry farm proposal.
And risk analysis is that mental checkpoint where you ask some real-life questions of your figures.
Example
Also, take a look at this example layer farm risk analysis.
Best practice
Risk analysis is the final check of rearview and wing mirrors before pulling off with confidence to proceed into the road ahead.
It’s the last call for due diligence and what it does is cover your back before you dive in.
A much needed and necessary final check before execution.
