Periodic Review

Finance

Quick Definition

Periodic Review is the process of evaluating financial performance, investments, or business operations at regular intervals to ensure goals are being met.

Detailed Explanation

Periodic Review involves checking and analyzing financial data monthly, quarterly, or annually to track progress and make necessary adjustments.

It is commonly used in investment management, budgeting, accounting, and business strategy to maintain efficiency and performance.

Where Periodic Review is Used

  • Investment portfolios
  • Business performance analysis
  • Budget and expense tracking
  • Loan and credit monitoring

Why Periodic Review Matters

  • Helps identify issues early
  • Ensures alignment with financial goals
  • Improves decision-making
  • Enables timely corrections

Key Activities in Periodic Review

  • Performance evaluation
  • Comparing actual vs planned results
  • Risk assessment
  • Strategy adjustment

Example

"An investor reviews their mutual fund portfolio every quarter to check performance and rebalance investments."

← Back to Financial Dictionary