The main purpose of any business organization - to maximize revenue.However, any business entity by investing their capital faced with the manifestations of certain risks, sometimes even losses that may be associated with uncollected expected revenues.The result could be obtained null result from the introduction of a new project, or even an entrepreneur will incur losses.Qualitative analysis of the risks can help prevent the occurrence of these adverse effects.
It provides an assessment of risks, should they arise, using established criteria, which must take account of all costs as well as environmental factors and socio-economic aspects.
Qualitative analysis makes it possible to get the result, determines the classification of risks in the context of their probability of occurrence and expected consequences.
The main problem lies in the management of their correct determination of their list at the stage of identification.Without that manage these negative factors is simply impossible due to the need to attract significant human and financial costs.Therefore, a qualitative analysis aimed at proper risk sharing groups and arranging them in a certain order of priorities.Their classification, for example, can be carried out by temporal proximity.Those risks can be found in the near future, we should have a higher priority than those which are expected in the distant future.In order to build them correctly, you must carry out the analysis using the estimates of the probability of occurrence and their impact on future or ongoing project.
Qualitative analysis - quite fast and inexpensive ways of prioritizing, he performed during the cyclic existence of the project.Also, it should reflect everything changes, which may relate to manifestations of risk in the project.
main objective of the qualitative analysis is the identification of risk factors and that at any stage or during the execution of any work they arise.In other words, this type of analysis allows to potentially establish their first field, and then - to determine everything varieties.
financial risk assessment is to determine the degree of their influence on the project.Conventionally, all the factors are divided into two main groups: subjective and objective.
Objective include factors that do not depend on the firm, and are the consequences of the economic or political situation in the country.This competition, inflation, economic and political crises, customs, ecology, etc.
But subjective factors depend directly on the activities of the firm.This, for example, production capacity, the level of technical expertise, equipment, organization of work, the level of safety, the level of labor productivity, etc.This type of factors is of great importance for the organization, since it depends on, and received at the end of the project profit.
With proper and timely detection of these risks can be greatly reduced or completely prevent a negative impact on the implementation of the project.This requires great skill to use qualitative analysis and to develop appropriate and effective measures on minimizing such adverse effects.
That is why any manifestation of financial risks have to be controlled in the process of entering into any transaction, or the implementation of monetary transactions.Otherwise - there is the possibility of losses, and possibly ruin.
