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What is financial and business risk?

Updated: 9/24/2023
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Q: What is financial and business risk?
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Financial risk of running a business?

financail risk of operating and opening a business


What is a financial risks?

Business and Financial risk is defined as the risk to your professional credibility and finances if the business venture fails. This also depends on how successful the business looks like it will be.


Examine the concept of business risk and uncertainties and explain various business risk?

business risk is the risk ,a business face ,again the achieving of its objectives ,it can be of many types , like currency risk, political risk , industry specific risk , also financial risk that can also be business risk


What form of invested capital is subject to most of the firm's business and financial risk?

Equity capital


What is the financial risk of starting a business?

In any business you want to start up, it would usually require you to invest money or at least spend something so that you can successfully start a business. Since money is always visible in starting a business, you should also expect for a financial risk. When your business do not succeed well, the tendency is you will not be able to have a return on investment. Now before starting up any business, it is always essential to have a business plan in order to identify financial risks to company.


Non financial risk?

i assume by non-financial risks, you mean business risks. Business risks refer to the kind of risks that could damage the performance of the business (IE, change of management, decreasing customer base, etc)


What does the term 'compliance risk' mean?

'Compliance risk' means the risk of material financial loss, legal liability, or loss of reputation to a business as a result of its failure to comply with the law.


What are the duties of the financial advisor when dealing with high risk investment in terms of a financial planning institute's code of conduct?

Basically, making sure that giving the right advise because of the high risk the business involve.


What are the factors affecting capital structure in financial management?

1. Business Risk 2. Financial Flexibility 3. Managerial Attitude 4. Tax Position


What are the most common risks to opening a new business?

Some of the most common risks when opening a new business are financial struggles and uncertain market conditions. Having financial plans before starting a new business can help reduce the risk.


How can a company experience risk?

Risk is, by definition, the likelihood or non-likelihood of a financial loss occuring. The financial loss can be in terms of the loss of money, damage to property, or any other occurrence that has a financial impact upon the business. Insuring is the process of transferring the risk of loss from the entity that bears the risk to an insurer. The insurer agrees to assume the risk in return for a premium. The terms and extent of the transfer of risk is set forth in the insurance contract.


When was Financial Risk Manager created?

Financial Risk Manager was created in 1997.