A risk assessment system that performs a risk assessment of a financial transaction. The risk assessment system incorporates a profitability assessment scoring model that evaluates whether to approve or decline a financial transaction based on the potential profit or loss that can be generated by the transaction for the guarantor or merchant. The profitability scoring model uses an algorithm that is formulated to calculate a profitability score based on variables that have a direct correlation to the overall profit or loss of the transaction. The scoring model takes into consideration variables such as the per check fee charged, probability of collection, and collection fee. The risk assessment system determines whether to approve or decline a transaction based on the potential profit or loss that can be generated by the transaction.