The risk related to the forecasting is dependent on the facts and figure of the historical data. Eventually, the user prepares from a different source which is either collected from the primary source or the secondary sources or obtained from both the sources are referred as the mixed data collection techniques and analysis (Hampton, 2011). The data may contain false facts and figure which might lead to the false earning report which eventually decreases the probability of success of the forecasting techniques. Therefore it is very much essential to prepare and project the historical data from defined and authentic sources which will lead to the forecasting of the facts and figure more accurate and precise. Therefore it is very evident that forecasting risk is well thought-out to be one of the important and initial steps which need to be taken care. It also helps to provide and protect the integrity of the historical data along with the principal earning report related to it and thus making the user mitigate the risk associated with the forecasting tools and techniques.
Forecasting is dependent on the data and variable which are generated and prepared by the previous recording (Guerard, 2013). The forecasting techniques such as sampling, probability, data analysis, etc. help to prepare and publish the historical data into forecasted facts and figures. It eventually leads to the mitigation of the risk and another key factor which may lead the hinder of the earning figures and leads to the false report related to the forecasted figure and henceforth, the increase in the risk associated with the earning margin is seen. Therefore it is very much essential for the users to prepare and record the historical data to avoid future risk and another loophole in the falsification of the forecasted report. Therefore the mitigation of the forecasting risk is well thought-out to be significant in determining the earning margin, and henceforth, it helps to provide the techniques with accuracy and precise calculation.