Use of Risk Analysis in Investment Measurement and Management

Business risk is assessed in relation to specific criteria of efficiency valuation of the investment activity. By using risk analysis, available methods and techniques applied in risk analysis as tool of investment measurement and management, the company obtains information that will support its decision and on this basis it can better decide in acceptation or rejection of the investment. We focused in our paper on investment risk analyses applied in tested firms. We tried in our research detect if companies in research sample apply any investment risk analysis, what kinds, methods or concept of risk evaluation they use. The main goal was to find out if using of certain risk analysis has the impact into business performance. We have collected data trough questionnaire. Research sample consisted from 164 firms from Slovakia. We applied certain statistical methods suitable for tested variables. Results of our research has shown, that companies using some risk analysis, achieved a slightly higher performance.