Business risk

The risk that the cash flow of an issuer will be impaired because of adverse economic conditions, making it difficult for the issuer to meet its operating expenses.

Business Risk

The risk that a company will go bankrupt. Every company carries the business risk that it will produce insufficient cash flow in order to maintain operations. Business risk can come from a variety of sources, some systemic and others unsystemic. That is, every company has the business risk that the broader economy will perform poorly and therefore that sales will be poor, and also the risk that the market simply will not like its products.

business risk

The risk that a business will experience a period of poor earnings and resultant failure. Business risk is greatest for firms in cyclical or relatively new industries. Business risk affects holders of stocks and bonds, since a firm may be unable to pay dividends and interest.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Mentioned in

References in periodicals archive

Building off of those use cases, the RSA Archer Ignition Program is a series of offerings to get customers' business risk management programs implemented and delivering value back to their organizations.

RSA launches new program to help customers manage risk better

The empirical work considers two "real" determinants of insider ownership, business risk and firm size.

A Financial and Quantitative relationship of debt, dividend and insider ownership

Undoubtedly the concentration of all of the business risk (BRO and BRC) in a single organizational entity likely has contributed to the failure of some of these organizations.

Slicing and dicing Business Risk: deciphering the capital and operational aspects of nursing homes

Managing business risk is more difficult now than ever, and it must be done diligently.

Managing financial risk in agriculture during turbulent times

Abdullatif and Al-Khadash analyze views of Jordanian auditors about how the business risk audit approach is applied in practice by Jordanian audit firms and how appropriate and practical the application of such an international approach to auditing is in a different context from that where it was established.

The risk assessment practices of audit firms

MANAMA: The oil and gas sector has been unevenly impacted by the global economic downturn which has created new risks for the industry that threaten the near-term survival and prospects of a number of oil and gas companies, according to the 2009 Ernst & Young business risk report.

Global crisis creating 'new risks for oil and gas sector'

Besides helping to identify poor risks, this modeling also can be used to identify and target prospects that may be better opportunities in terms of business risk.

Underwriting risks during a downturn: the poor economy presents group underwriters with special challenges in managing life and disability insurance risks

Dubai: Ernst & Young's 2009 Global Business Risk Survey has confirmed that businesses around the world including those in the Middle East are increasing their focus on a wide variety of risks as global economic conditions continue to be affected by the aftermath of the credit crunch.

Mideast firms act against aftershocks of crunch

Summary: National Hydrocarbon Company Sonatrach plans to set up shortly a Business Risk Committee (CRC) assigned with monitoring different risks to this company marketing activity.

Sonatrach : Business Risk Committee to be set up shortly