Financial Risk

What Does Financial Risk Mean?
The risk that a company will not have adequate cash flow to meet financial obligations.

Investopedia explains Financial Risk
Financial risk is the additional risk a shareholder bears when a company uses debt in addition to equity financing. Companies that issue more debt instruments would have higher financial risk than companies financed mostly or entirely by equity.

Related Terms

Country Risk
Liquidity Risk
Market Risk
Operational Risk
Risk
Risk Free Asset
Risk Lover
Risk Neutral
Systematic risk
Unsystematic Risk
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