Do you think financial risk is the highest risk in a business?

[Ogbest]

Every business owner or a business starter always needs funds to lunch a business and to support a business growth. This fund is either gotten in the form of loans from investors, their own savings, or funds from family. But aside this, there are other risks, like failure to plan accurately which could mean that the business owner risks bankruptcy, and investors get nothing. Is there any risk in a business that is greater than financial risk?

 

[Godleads1]

The risk of a change in policy. If an entrepreneur has made all his homework over the business and has gotten the capital and invested, the government policy could be an unforeseen risk that can affect the business.

 

[redpogi16]

Also Economic Risk is the risk you will face in your business. Our economy is constantly changing as the markets also change. Some positive changes are good for the economy, which lead to booming purchase environments, while negative events can reduce sales. It is important to watch changes and trends to potentially identify and plan for an economic downturn.

 

[Jimmie150]

Yes it is the highest risk in business. But one needs to carefully manage it or else it might be disaster awaiting to take effect. I believe there are ways through which one can control the risk in other not be too much.

 

[Ogbest]

You are correct, starting any business is a function of money/capital availability, you would not go into any business without having the needed funds, but considering risk the greatest I think is financial risk

I come to understand that we have uncountable risks in a business. But looking at them all, it seems that of financial risk is the highest. Without it, one can't even establish business.

 

[jimmann247]

There are many risk that are involved in business but I think financial risk superceded most of the other once, but they are as important as financial risk too. Getting or staying at the wrong location doing business, government policies might trash out your business too etc..

 

[Ralphjoe]

Financial risk is the risk is the highest risk of a Business because finance is the heart of a business, once it stops coming in then the business will have no other option but to stop being in existence. Other aspects of a business can shut down but the business will continue but once finance is off then the business dies naturally.

 

[Diamond07]

Every business owner or a business starter always needs funds to lunch a business and to support a business growth. This fund is either gotten in the form of loans from investors, their own savings, or funds from family. But aside this, there are other risks, like failure to plan accurately which could mean that the business owner risks bankruptcy, and investors get nothing. Is there any risk in a business that is greater than financial risk?

There are other risks that affect a business other than financial risks. There's Economic risk -economic risk refers to the risk that a venture will be economically unsustainable, due to various reasons vitiating from an alteration in economic trends to fraudulent activities which ruin a project’s outcome.

 

[Ogbest]

There are other risks that affect a business other than financial risks. There's Economic risk -economic risk refers to the risk that a venture will be economically unsustainable, due to various reasons vitiating from an alteration in economic trends to fraudulent activities which ruin a project’s outcome.

But among all the risks listed, don't you think financial risk is the worst risk among them? Financial risk has indeed brought many businesses down.

 

[Sana Diyar]

Every business owner or a business starter always needs funds to lunch a business and to support a business growth. This fund is either gotten in the form of loans from investors, their own savings, or funds from family. But aside this, there are other risks, like failure to plan accurately which could mean that the business owner risks bankruptcy, and investors get nothing. Is there any risk in a business that is greater than financial risk?

No I don't think financial risk is the highest risk in a business.

 

[abubakar3141]

Financial risk is the probability that an investment or business plan may lose capital. Credit risk, liquidity risk, and operating risk include several more general and distinct financial risks. Financial risk is a form of risk that can cause stakeholders to lose money.

 

[MarieArie]

Financial risks strike at the heart of a business, starving it of resources and hampering cash flow. Financial risk can appear in many forms – from customers who fail to pay for their purchases, suppliers who fail to ship inventory, and even the company’s own business strategy if risky decisions are made. It’s no surprise that starting a new business venture or running a corporation comes with a certain degree of risk. However, the term “business risk” refers specifically to anything that could threaten a company’s financial health or lead to insolvency.

 

[Sheyemanu]

Concerning your question on if financial risk is the greatest risk in business, I would say yes, it is indeed the greatest risk in business. You start a business so you can make money/income or profit whatever you call it, so financial risk is the greatest risk attacher to business. There are also other risks involved

 

[Abigael]

Since getting financial profits is the main goal of business, that makes financial risk to be the main risk. That is why one should be so careful with all the other factors because they directly determine if you will earn profits or not. For example, poor planning can lead to poor use of capital hence leading to bankruptcy.

 

[Hasan Raza]

Financial risk is the likelihood that a speculation or marketable strategy may lose capital. Credit hazard, liquidity hazard, and working danger incorporate a few more broad and unmistakable monetary dangers. Monetary danger is a type of danger that can make partners lose cash.

 

[Tollytee]

Financial risk is the highest risk in business because a company with a relatively higher level of debt financing carries a higher level of financial risk since there is a greater possibility of the company not being able to meet its financial obligations and becoming insolvent.

 

[Tariq Nazir]

Since getting financial profits is the main goal of business, that makes financial risk to be the main risk. That is why one should be so careful with all the other factors because they directly determine if you will earn profits or not. For example, poor planning

 

[Ogbest]

Financial risk is the highest risk in business because a company with a relatively higher level of debt financing carries a higher level of financial risk since there is a greater possibility of the company not being able to meet its financial obligations and becoming insolvent.

I strongly agree with you, everything about business needs the help of money, with finance, you can expand your business, you can stock more goods. I consider financial risk as the highest as far as business is concerned.

 

[Chumzy]

On the face of things one could say yes and would not be wrong. But in all honesty there is more risk one could take than that. There could be the risk of employing a wring staff too.

 

[Sparrow 001]

To me financial risk is the father of them all... No matter how you plan or how prepared you are for any business idea and without the finance everything is a waste... How do you intend to start a business plan without the right amount... So business plan without finance is rubbish... Financial risk is the ultimate