1. Describe Risk Analysis and its impact on financial considerations for new projects. 2. Discuss h

Risk analysis can be seen as a process which can be used for the identification and proper management of probable issues which can undermine the vital business initiatives or project. In order to perform a risk analysis, one has to, first of all, determine the possible threats which one can face and then try to find out the chances of these threats to be materialized.
Risk analysis has a greater impact on the financial aspect of the project as different types of risk can have a greater impact on the timely completion of the project which can increase the overall cost of project completion.
Risk Analysis and Due Diligence:- Risk analysis is an activity which facilitates the management to express that all the obligations are fulfilled related to due diligence while taking a decision related to moving ahead with a new project, investment strategy, capital expenditures and many other such types of business activities. Risk analysis tries to determine the various factors which can be effective while determining the approval or rejection of a project. It determines the tangible effects such as the cost of development, capital required, long-term costs, this also takes the intangible effects into consideration for example regulatory obligations customer connivance.
Risk Assessment and Fiduciary Duty:- With the help of risk assessment and risk analysis, the methods are provided to the organizations to make informed decisions. By combining these processes in the whole organization, it will be possible for the firms to have the control over different processes from outside influences. By having an effective risk analysis process, the implementation of only required and necessary controls and safeguards will be allowed.
When the planning of projects is taking place and this will assist the managers to predict and neutralize the probable issues.
It can be used in deciding whether to adopt the project or not.