business risk


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Related to business risk: Financial risk

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.
References in periodicals archive ?
The Arthur Andersen Business Risk Model(TM) is based on Arthur Andersen's and The Economist Intelligence Unit's (EIU) research report Managing Business Risks: An Integrated Approach.
Another is to help the client focus on emerging business risks that may not yet be well-understood or managed.
She was a key participant in the development and implementation of a business risk management process that won the prestigious Malcolm Baldridge Quality Award from President George W.
Executives often view IT service delivery as ineffective in meeting business needs and are dissatisfied with the return on their IT investment in helping the organization manage business risks
In his EMA Advisory Note -- Wake Up, Risk Managers: Societe Generale Highlights the Critical Dependency of Business Risk Control on IT (http://www.
Business risk level remains low at least in the nearest three years and under governmental control, the Company will achieve all its goals.
Ten years from now, we probably will see many more boards with committees devoted to business risk.
By including pure and speculative business risk and focusing on potentially catastrophic exposures, financial executives easily gained the interest and support of senior managers at the corporate and divisional level.
Protiviti, a leading internal audit and risk consulting firm, has introduced two advanced technology solutions that it says will help its clients better identify, evaluate and manage their business risks.
Align Tax Risk with Business Risk and Close Information Gaps
American Girl, the Wisconsin Supreme Court considered, but ultimately rejected, the traditional business risk defenses.
In his new position at Business Risk Partners, Stephen L.

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