UK Accounting Glossary
Exists where a company has loan finance, especially long-term loan finance where the company cannot relinquish its commitment. The risk relates to being unable to meet payments of interest or repayment of capital as they fall due.
Financial Risk, in relation to financing and technology, is an overarching term referring to any of the many ways a company or system cannot achieve its goals due to foreseeable issues. Financial Risk is often broken into the following areas; Credit Risk, Market Risk, Liquidity Risk, and Operational Risk, which can all be broken down further. Most companies have Risk Managers who develop and implement risk assessments to determine the risks surrounding the business
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This glossary post was last updated: 23rd December 2018.