1. Introduction
Risk is defined as an event that has a probability of occurring, and could have either a positive or negative impact
to a project should that risk occur. A risk may have one or more causes and, if it occurs, one or more impacts
(www.phe.gov). The concept of risk is manageable due to the phenomenon of constantly being analyzed by
investors, and development tools for hedging evil is constantly monitored studies. Risk management is a rapidly
developing discipline and there are many and varied views and descriptions of what risk management involves, how
it should be conducted and what it is forFinancial planning is a process by which you assess your financial situation and your sources of finance,
determine your objectives, and then formulate financial strategies to achieve those objectives (Elahi, 2008). Having
planned financial activities in advance, where they could be used in the most profitable way of funding also means
early detection. In addition, financial planning, and all business units to focus on their business objectives in a
coordinated way towards achieving the same goal efforts provide an important contribution.
In search of such information, the managers of the company could opt to evaluate its risk profile using the widely
used Value-at-Risk measure, or, being an industrial company, Cash Flow-at-Risk (CFaR). The CFaR measure
provides a summary statistic of the risk inherent in the firm’s portfolio of cash flows. It essentially represents the
shortfall of cash flow, associated with a certain probability, a company could experience over a certain time period.
Such a modelling effort can be helpful in managing the firm’s operating cash flow and provide a sense of the firm’s
overall liquidity risk over a certain time period