The main methods of entrepreneurship risk assessment

  • Time: 2013-08-01 14:39:06
  • Source: SLEEING
  • Hit: 2577

Venture evaluation, but also known as risk measure, is on the basis of risk identification, evaluation and analysis of the identified risk likelihood and impact, determine the risk status, provide an effective method for risk response. Methods of entrepreneurship risk assessment is usually the combination of quantitative and qualitative analysis techniques. Is the basis for risk assessment of entrepreneurial risk qualitative analysis, mainly is the potential impact of certain risk to the enterprise produces and corporate risk tolerance. The qualitative analysis with analytic hierarchy process, subjective scoring method, risk assessment diagram method. If the risk is beyond the capacity of enterprises, must be on the venture to adopt positive measures to resolve or make up. Quantitative analysis of the venture, refers to the use of quantitative indicators to evaluate the business risk, improve the accuracy of risk assessment. Quantitative analysis includes risk value method, pressure test, sensitivity analysis, break even analysis, decision tree method. Determined by qualitative analysis of the attributes and characteristics of entrepreneurial risks, high frequency venture needs to carry on the quantitative analysis, the risk to be quantified, visualization.

 

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