Risk Ratings 

Risk assessmnet or management is one of the top priorities of industries. It is used to determine the possibility of loss on an asset, loan, or investment. Assessing risk is essential for determining how profitable a specific investment is and the best process(es) to mitigate risk. 

One aspect of effectively managing and mitigating risk is understanding how it is measured, especially when it comes to tools and resources that provide risk ratings. IBISWorld offers a suite of Industry Risk Ratings reports that quantify the level of difficulty an industry faces over the short-term. 

The risk scores measure the difficulty of a business environment. Scores range from 1 – 9 and are classified via levels ranging from very low risk to very high risk. For example, a risk score rating of 1 to 3 would be classified as very low risk. The overall risk score is calculated from three industry factors: structure, growth, and sensitivity.

Watch this video to learn how to find Risk Ratings in IBISWorld.