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- Financial Risk Management.

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What are the risks

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and how are you planning to manage

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or mitigate the risks knowing they exist?

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This should be brief,

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as you don't want to create an assumption

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that the risk may outweigh the reward.

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It's better to show how you plan

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to continually analyze the financials

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of the business model.

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So write a two to three-paragraph statement

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on how you plan to identify risk

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and then mitigate the liability of the company

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to steer clear or reduce losses.

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You might open with a brief statement,

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something along the lines like this.

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"The thorough review and evaluation

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"of the financial statements

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"and business' performance will be performed

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"on a monthly basis.

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"Financial details for revenue,

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"direct cost of revenue,

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"gross profit margin, expense, and cash

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"will be reviewed to make certain

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"key financial indicators

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"are within acceptable range of the project amount.

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"This will also be scrutinized

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"by the accounting firm 123 CPAs

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"to ensure that the integrity of the data

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"is upheld and supported."

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What you are really demonstrating

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is that you have every intention

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to be on top of your financial performance,

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thus further instilling confidence to the investors.