Risk Analysis

 

For our Risk Analysis Service, we identify, map, and measure risk.

 

Each project is subject to multiple sources of risk that can make the difference between a profitable and unprofitable endeavor. A thorough analysis of risk is, thus, crucial to quantify and understand how risk can affect the value of the project and what measures can we take to reduce its impact.

 

Our first step is to identify the sources of risk. Our second step is to map how these risks are connected and how they relate to the project and firm. Finally, we measure risk using Econometrics and Monte Carlo Methods: we quantitatively analyze how strong each source of risk is and how they impact in value creation. We try to answer questions like: How likely is that the investment will deliver negative returns? How likely is that the investment will deliver returns below my required rate of return? What is the Value-at-risk? What alternatives are there to mitigate risk?

 

What alternatives do I have to mitigate risk? Our Risk Analysis Service is offered together with our Business Valuation and Contract Design Services. Yet, we can offer a more detailed Risk Analysis which would demand higher data compilation and more advanced Econometrical methods.