financial risk

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Financial risk

The risk that the cash flow of an issuer will not be adequate to meet its financial obligations. Also referred to as the additional risk that a firm's stockholder bears when the firm uses debt and equity.

Financial Risk

Any risk that comes from giving money to another person or entity. For example, if one lends money, one carries the financial risk that the borrower will not repay it. A venture capital firm carries the financial risk that its investments will never become profitable. Likewise, an investor who purchases an asset carries the financial risk that he/she will be unable to re-sell it.

financial risk

The risk that a firm will be unable to meet its financial obligations. This risk is primarily a function of the relative amount of debt that the firm uses to finance its assets. A higher proportion of debt increases the likelihood that at some point the firm will be unable to make the required interest and principal payments.
References in periodicals archive ?
ENPNewswire-September 4, 2019--Liberty promotes Blake to build Bermuda financial risks reinsurance
However, most organizations did not respond to the financial risks brought to light in the financial crisis by making significant management or technology changes.
He added that he has a responsibility as commissioner to be certain that insurers address financial risks in the reserves they use to pay claims.
Governor Zhou Xiaochuan said that the bank would make more efforts to enhance macroeconomic controls and fend off financial risks.
Instead of different corporate departments managing different kinds of risks--with insurance risk management overseeing property/casualty exposures, treasury riding herd on financial risks and internal audit dealing with operational/strategic risks--enterprise risk management calls for a single, unified system of assessing the entire risk landscape.
"Far more worrying are financial risks that are growing outside the U.S.
Global Banking News-June 18, 2018--Chinese central bank sets up unit to monitor financial risks
M2 EQUITYBITES-June 18, 2018--Chinese central bank sets up unit to monitor financial risks
According to Reuters, the apex bank has set up a unit to track domestic and international financial risks and help guide and stabilise market expectations.
I think you would rather have our paper than his."(58) In highlighting the security of his capital over Sutro's, Sharon implicitly recognized how serious miners' financial risks were, but he sought to deflect such hostility towards his "penniless" rival.
Some users buy derivatives that involve risks they hope will help offset or round out existing on- and off-balance-sheet financial risks. Others buy them hoping that assuming greater potential risk will mean greater potential rewards.
The deep experience of treasurers in managing financial risks such as transactional, interest rate, counterparty and insurance makes their leadership crucial.

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