Enter Financial Inputs
Example Data Table
| Portfolio Value | Debt Ratio | Current Ratio | Volatility | Event Probability | Loss Given Event |
|---|---|---|---|---|---|
| 500000 | 48 | 1.35 | 18 | 22 | 35 |
| 850000 | 62 | 1.10 | 26 | 28 | 42 |
| 1200000 | 75 | 0.95 | 34 | 31 | 48 |
Formula Used
Weighted Risk Score = (Debt Risk × 0.18) + (Liquidity Risk × 0.14) + (Volatility Risk × 0.14) + (Event Probability Risk × 0.12) + (Loss Severity Risk × 0.14) + (Concentration Risk × 0.10) + (Coverage Risk × 0.10) + (Reserve Risk × 0.08).
Expected Loss = Portfolio Value × Event Probability × Loss Given Event.
Stress Loss = Expected Loss × Stress Multiplier × (1 + Revenue Volatility).
Risk Adjusted Capital = Portfolio Value − Stress Loss − Liquidity Buffer Gap.
Percent inputs are converted to decimals during calculation. Ratios are normalized into 0–100 risk points before weighting.
How to Use This Calculator
- Enter current portfolio value and monthly operating figures.
- Add leverage, liquidity, volatility, concentration, and coverage inputs.
- Estimate adverse event probability and likely percentage loss.
- Choose a stress multiplier for harsher scenario testing.
- Submit the form to view the risk score.
- Review expected loss, stress loss, and factor breakdown.
- Export your results to CSV or PDF if needed.
Frequently Asked Questions
1. What does this calculator measure?
It combines leverage, liquidity, volatility, probability, severity, concentration, coverage, and reserves into one weighted financial risk score.
2. Is the score a prediction?
No. It is a structured estimate that highlights vulnerability levels and supports better planning, monitoring, and scenario discussions.
3. Why is liquidity important here?
Weak liquidity reduces flexibility during disruption. Lower current ratios and thin reserves raise the normalized risk score quickly.
4. What is loss given event?
It is the percentage of value you may lose if the adverse event actually happens.
5. How should I choose the stress multiplier?
Use 1.0 for a base case, above 1.0 for severe conditions, and below 1.0 only for milder testing.
6. Can I use this for lending decisions?
Yes, as a screening aid. It should support, not replace, full credit review, covenant analysis, and professional judgment.
7. What score range is considered dangerous?
Scores above 55 suggest high concern. Scores above 75 indicate critical risk and need prompt corrective action.