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 ?
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.
The empirical work considers two "real" determinants of insider ownership, business risk and firm size.
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.
The positive outlook reflects TRC's expectation that Taiwan Mobile's balance sheet is deleveraging and it is likely to strengthen its business risk profile if it successfully completes the acquisition on a major cable operator in Taiwan.
Evaluators appeared to more favorably assess innovations with regard to both business risk and demand analysis, and business risk was the most common factor grouping in the model.
Prior research has shown auditors' decisions to accept clients are influenced by the auditors' perceptions of the client's business risk and the auditor's business risk (Johnstone 2000).
Managing business risk is more difficult now than ever, and it must be done diligently.
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.
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.
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.
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.
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.

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