Joint Venture Risk Assessment evaluates the risks linked to a borrower’s participation in a joint venture or partnership-like arrangement. MSMEs may enter joint ventures for projects, supply contracts, land development, manufacturing, distribution, or technology access. Such arrangements can create dependence on another party for funding, execution, approvals, revenue, or management control. For example, if a borrower’s projected cash flow depends heavily on a joint venture partner delivering orders or capital, the lender must assess that partner’s reliability too. This assessment matters because disputes, unclear agreements, or unequal obligations can affect repayment. The common caution is to review the JV agreement, ownership share, responsibilities, related-party terms, exit clauses, and whether cash flows are legally available to service debt.