If your organization put up $2 million cash and financed $8 million for a new building, there is a high level of risk. We might even say 80%. Compare that to putting up $2 million and financing another $2 million. We might say the risk is 50%. That's just one simple way of assessing risk. But, it can't be that simple, can it?

 

What other factors must be taken into consideration for a multi-million dollar project? What other ways can we measure risk? The course text gives us a lot to consider.

Answer rating: 100% (QA)

Several factors need to be considered when assessing the risk of a multimillion dollar project These include Market risk This refers to the potential ... View the full answer