Critical Risk Ratios for SMEs
Beyond traditional financial metrics, we also consider industry-specific risk ratios to provide a more comprehensive picture. This may include:
Risk-Return Ratio
Measures the relationship between risk and potential return
Loss Ratio
Assesses the frequency and severity of losses
Risk-Based Capital Ratio
Evaluates the company’s adequacy for risk taking
Credit Risk Ratio
Measures the likelihood of default and credit risk
Operational Risk Ratio
Assesses the company’s risk of operational failures and disruption