Financial impact refers to the effect that an event, decision, or policy has on the monetary resources of an individual, organization, or economy. This can include changes in revenue, expenses, profits, or overall financial health. For example, a new tax policy may increase costs for businesses, affecting their profitability and investment decisions. Understanding financial impact is crucial for making informed choices. It helps stakeholders, such as investors, business owners, and government officials, assess risks and benefits. By analyzing financial impact, they can better plan for the future and allocate resources effectively to achieve their goals.