Z-Score Risk Assessment represents use of a statistical score, such as Altman Z-score or a bank-specific model, to assess distress or default risk. It combines financial indicators into a risk signal. Define the model clearly before using this term. In risk and portfolio monitoring, it helps identify early warning signals, control gaps, borrower stress or conditions that need closer follow-up. The assessment should connect the signal to a clear action such as additional verification, tighter covenants, lower exposure, pricing change or enhanced monitoring. For example, a weak Z-score can signal financial stress, but it should be interpreted with industry context and updated financial data. It matters because risk indicators are useful only when they trigger timely review, mitigation, documentation and follow-up action. The common caution is to avoid mechanical scoring; the reason, trend, source data and proposed mitigant should be recorded clearly.