business risk

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
References in periodicals archive ?
Business interruption and cyber incidents remain the top two business risks, but other challenges such as tariffs and Brexit are gaining ground, according to the 2019 Allianz Risk Barometer.
This leaves enterprises struggling to respond to business risks, ill-equipped to capitalize on growth opportunities, and unable to demonstrate concrete business value from investments in risk management.
Transparency-One maps the entire supply chain, tracks compliance, and provides analytics to proactively manage business risks.
Final Quotient will work with Oracle customers to address emerging business risks while bridging the gaps in regulatory compliance in the region.
CROs from companies with exemplary programs recommend that organizations: take an aggregated view of risk and build a risk appetite framework; monitor key business risks through dashboards and a common GRC technology platform; shape a program around expanding and emerging business risks; strengthen their second and third lines of defense; and get help from an outside source to close internal competency gaps.
That would include pension funds and commercial businesses with financial affiliates that use derivatives primarily to hedge business risks and whose derivatives use doesn't jeopardize financial stability.
Regional views from Quebec, China, Africa, Latin America, Indonesia and Mongolia will be shared by a diverse group of experts, discussing business risks within the mining industry.
There are two major business risks faced by the nursing facility owner:
The survey, comprising interviews with more than 70 executives and analysts across 14 industrial sectors, reveals the most important business risks varied dramatically across sectors, regions and companies.
Although most business risks will have an effect on the client's financial results, some may even have a direct impact on the financial statements.

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