👉 Draftiness is a concept in accounting and finance that refers to a situation where an organization's financial performance may not meet its financial targets or expectations. It occurs when management fails to achieve the desired level of profitability, which can lead to decreased stock prices and negative investor sentiment.
Draftiness can be caused by several factors, including:
1.
Lack of Risk Management
: Poor risk management practices can result in high levels of risk, which may not translate into profits.
2.
Insufficient Investment