How do you define Forecasting Risk?
How do you define Forecasting Risk?
Forecasting risk is defined as the probability regarding financial decision failures that may rise due to certain circumstances. Such cases occur in case of the new product or project launch where the assessment of risk can only cover the predictable factors. There is need to make sure the financial matters are in safe position which means that financial risks are assessed and analyzed thoroughly. The first question that we may ask regarding this is how certain we are that new product are better than the competitors’ product? Which addresses the market stand point of the firm and secondly are the production being done on the lowest possible cost? And does the distribution is effectively conducted through identified markets and proper channel of distribution where markets are developed and gained control over. The new product and projects are riskier and hence need more close analysis in the process of development.