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Financial Risk Assessment checklist
Identify Financial Risks
Review financial statements for the past 3 years
Analyze the company's market position and competition
Assess the level of dependence on key customers or suppliers
Evaluate Risk Management Controls
Check for the existence of a risk management policy
Review internal controls and audit reports
Evaluate the effectiveness of current insurance coverages
Assess Credit Risk
Analyze accounts receivable and aging reports
Perform credit checks on major customers
Review credit terms and conditions
Analyze Market and Liquidity Risk
Evaluate exposure to foreign exchange rate fluctuations
Assess the company's investment portfolio for diversification
Review cash flow projections and liquidity planning
Review Operational Risks
Identify critical operational processes and potential bottlenecks
Evaluate the adequacy of business continuity and disaster recovery plans
Check compliance with health and safety regulations
Monitor Compliance and Legal Risks
Ensure adherence to relevant laws and regulations
Review contracts and agreements for potential liabilities
Keep abreast of changes in legislation that could impact financial risk
