To get a broad idea of the risk profile of a business, one should look at their ________

To gain a comprehensive understanding of a business's risk profile, one should examine their financial statements. Financial statements, including the balance sheet, income statement, and cash flow statement, provide critical insights into a business’s financial health, operational efficiency, and overall stability.

By analyzing these documents, stakeholders can assess various risks such as liquidity risk, credit risk, and operational risk. Additionally, it is beneficial to consider other factors like market conditions, regulatory environment, and historical performance. Incorporating qualitative data, such as management effectiveness and industry risks, will further enhance the evaluation of the business's risk profile. This thorough analysis can help in making informed decisions regarding investments, partnerships, or strategic planning.