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.

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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 >> 
Why would you take DCF into account rather than simply projecting future revenues?
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Is variance good or bad for stock investors?
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Can a mean variance analysis be done for any investment?
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What are the primary sources of market risk?
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