Abstract
The article examines the theoretical foundations of financial risk assessment. It provides an overview of foreign countries' experience in reducing financial risk. Specific proposals are made to reduce the financial risk of enterprises and their clients.This study examines the theoretical and practical approaches to assessing financial risk in innovative enterprises, focusing on scoring analysis as a key method. Financial risk, defined as the potential for losses due to insolvency, remains a critical challenge for financial institutions, particularly in economies with limited adoption of advanced risk management practices. The research highlights the knowledge gap in integrating robust scoring models, such as the Altman Z-score, within financial institutions in transition economies like Uzbekistan.A qualitative methodology is employed, utilizing a comprehensive review of theoretical foundations and case studies from international practices. The study emphasizes the importance of developing customized scoring models that account for local market dynamics, financial data availability, and enterprise-specific factors. Findings reveal that while scoring models have been widely adopted in developed economies, their limited implementation in Uzbekistan hinders effective financial risk management. The research further identifies challenges related to data accessibility and regulatory constraints that impact the reliability of insolvency predictions.The results demonstrate the effectiveness of scoring models in reducing financial risks by enabling early detection of client insolvency and informed decision-making. The implications of these findings are significant for financial institutions, suggesting the need for policy reforms, enhanced data collection practices, and integration of advanced technologies like machine learning for predictive analytics. This study provides actionable insights for strengthening financial risk assessment frameworks and calls for further research into aligning local scoring models with global best practices to enhance financial stability and economic growth.