In general usage, a financial plan is a comprehensive evaluation of an individual's current pay and future financial state by using current known variables to predict future income, asset values and withdrawal plans
Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have been set.
The risk management process is a framework for the actions that need to be taken.
- Step 1: Identify the Risk
- Step 2: Analyze the Risk
- Step 3: Evaluate or Rank the Risk
- Step 4: Treat the Risk
- Step 5: Monitor and Review the Risk
Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default.
Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent.
Financial risk is the possibility of losing money on an investment or business venture. Some more common and distinct financial risks include credit risk, liquidity risk, and operational risk.