From the course: The 45-Minute Business Plan

Financial risk management

From the course: The 45-Minute Business Plan

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Financial risk management

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- Financial Risk Management. What are the risks and how are you planning to manage or mitigate the risks knowing they exist? This should be brief, as you don't want to create an assumption that the risk may outweigh the reward. It's better to show how you plan to continually analyze the financials of the business model. So write a two to three-paragraph statement on how you plan to identify risk and then mitigate the liability of the company to steer clear or reduce losses. You might open with a brief statement, something along the lines like this. "The thorough review and evaluation "of the financial statements "and business' performance will be performed "on a monthly basis. "Financial details for revenue, "direct cost of revenue, "gross profit margin, expense, and cash "will be reviewed to make certain "key financial indicators "are within acceptable range of the project amount. "This will also be scrutinized "by the accounting firm 123 CPAs "to ensure that the integrity of the data "is upheld and supported." What you are really demonstrating is that you have every intention to be on top of your financial performance, thus further instilling confidence to the investors.

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