Web3 Economy Assessment Findings and Risks

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2	Web 3 Risk Assessment Process
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4	With the information gathered after the analyst has run simulations on the diagrams created in the assessment, it is necessary to detect any possible weaknesses or flaws that may affect the economy of the project. This document contains a list of risks that may be encountered with their associated impact. The analyst has to follow the next steps to evaluate the final score given to a project
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9	1. Identify risks: go through the risks listed in the sheet "Risks and Impact" and check if they are detected in the economy Risks may represent: - Flaws in the implementation or the design of the platform and its impact on the economy - Simulations results that are outside of expected or desired thresholds A generic form of writing an economic risk for this framework is: "If <Issue/Finding> occurs, then <Impact>"
10	2. Analyze risks: for each risk that was identified assign a value to the columns "Likelihood" and "Impact" from "Very Low" to "Very High"
11		Likelihood: the probability of the event to occur, which can depend on many factors, such as: - Number of scenarios where the risk was detected - How easy it is for the scenarios to materialize - The number of users affected by the finding or event - Current mitigation measures applied to solve the issue and their effectiveness
12		Impact: represents the consequences and the effects of the risk in the economy if the finding materializes. This impact will be generally in terms of the three pillars: - Currency stability - Price rationality - Proper allocation
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14	3. Evaluate risks: the spreadsheet will automatically calculate the risk severity of each finding depending on the values assigned to the likelihood and the impact. Once all the risks have been analyzed, the sheet Final Score contains the overall score for the project. According to this score, you can decide the sustainability of the project based on your own standards. Generally: - Approved: if the score is greater than or equal to 70 - Approved with observations: if the score is greater than or equal to 40 and less than 70 - Not Approved: if the score is less than 40
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