Financial Risk

Business, Legal & Accounting Glossary

Definition: Financial Risk


Quick Summary of Financial Risk


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.



Full Definition of Financial Risk


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


Synonyms For Financial Risk


financial crisis

Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/financial-risk/
Modern Language Association (MLA):
Financial Risk. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 14, 2020 https://payrollheaven.com/define/financial-risk/.
Chicago Manual of Style (CMS):
Financial Risk. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/financial-risk/ (accessed: July 14, 2020).
American Psychological Association (APA):
Financial Risk. PayrollHeaven.com. Retrieved July 14, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/financial-risk/

Definition Sources


Definitions for Financial Risk are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February, 2020 | 0 Views.