Other Business Risk Measurements
There are a variety of business risk measurement tools and techniques, few are highly technical, statistical and quantitative, whereas others more subjective, judgement driven and qualitative.
Methods include expected loss, value at risk and unexpected loss measures, tolerance testing, sensitivity analysis, financial ratios, statistical sampling and profit variation to evaluate and quantify risks. It is important to identify the risks, and then measure them using a method that is sufficiently simple for consistent application.
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