What is 'Risk Analysis'
Risk analysis is the study of the underlying uncertainty of a given course of action. Risk analysis refers to the uncertainty of forecasted future cash flows streams, variance of portfolio/stock returns, statistical analysis to determine the probability of a project's success or failure, and possible future economic states. Risk analysts often work in tandem with forecasting professionals to minimize future negative unforseen effects.
BREAKING DOWN 'Risk Analysis'
Almost all sorts of large businesses require a minimum sort of risk analysis. For example, commercial banks need to properly hedge foreign exchange exposure of oversees loans while large department stores must factor in the possibility of reduced revenues due to a global recession. Risk analysis allows professionals to identify and mitigate risks, but not avoid them completely. Proper risk analysis often includes mathematical and statistical software programs.

Analysis Of Variances  ANOVA
An analysis of the variation between all of the variables used ... 
MeanVariance Analysis
The process of weighing risk against expected return. Mean variance ... 
Stock Analysis
Stock analysis is a term that refers to the evaluation of a particular ... 
ExPost Risk
A type of risk measurement technique that uses historic returns ... 
Variance
The spread between numbers in a data set, measuring Variance ... 
Statistics
A type of mathematical analysis involving the use of quantified ...

Investing Basics
Investing During Uncertainty
The inability to forecast future events can turn the markets upside down. Find out how to stay rightside up. 
Professionals
Risk Management Framework (RMF): An Overview
A company must identify the type of risks it is taking, as well as measure, report on, and set systems in place to manage and limit, those risks. 
Economics
Understanding Statistics
Statistics provide the means to analyze data and then summarize it into a numerical form. 
Fundamental Analysis
Explaining Variance
Variance is a measurement of the spread between numbers in a data set. 
Economics
Explaining Financial Analysis
Financial analysis is a general term that refers to using financial data to make business and investment decisions. 
Fundamental Analysis
What is Quantitative Analysis?
Quantitative analysis refers to the use of mathematical computations to analyze markets and investments. 
Active Trading
Fundamental Analysis For Traders
Find out how this method can be applied strategically to increase profit. 
Economics
How to Invest In Developing Markets
Developing markets can be attractive additions to many investor's portfolios, but carry additional risks that must be considered. 
Fundamental Analysis
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario. 
Entrepreneurship
Why Companies Need Risk Management
Implementing risk management strategies can save an entire organization from failure. Is yours up to snuff?

How reliable is the mean variance analysis of an investment?
Learn how mean variance analysis is used to determine the historical volatility of an asset and how future volatility may ... Read Answer >> 
Is variance good or bad for stock investors?
Learn how high variance stocks are good for some investors and how diversified portfolios can reduce variance without compromising ... Read Answer >> 
Why would you take DCF into account rather than simply projecting future revenues?
Learn what discounted cash flow analysis is and why it is considered a better equity valuation tool than simply projecting ... Read Answer >> 
Can a mean variance analysis be done for any investment?
Learn how mean variance analysis is used in modern portfolio theory to create an optimal mix of assets to maximize return ... Read Answer >> 
How much variance should an investor have in an indexed fund?
Learn more about the significance of variance in index funds, its value as a measure of volatility and other common analytical ... Read Answer >> 
What are the primary sources of market risk?
Learn about market risk and the four primary sources of market risk including equity, interest rate, foreign exchange and ... Read Answer >>