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

[Kelly5]

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?

Yes. Financial risk is the greatest and the highest risk in the business. The risk taker might have gone as far as collecting a loan from a financial institution all with the hope that the business goes as planned. But nothing is really cast in stone.

 

[Akinwale701]

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 a lot of risks in business that are greater than financial risks. firstly the risk of doing businesses you know nothing about on its own is a bug risk, the risk of buying products you don't already have market for and the risks of committing your funds to goods or services that you know Will not yield is a big risk on its own.

 

[sam386150]

There are many others risks when it comes to business but financial risk is the highest risk, because anything that have to do with business involve financial abilities, so with that money your business cannot stand that is the simple facts.

 

[Bkoks]

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

 

[Usman Sattar]

Every company is subject to a degree of financial risk. Not all financial risks are able to be controlled, for example, disruptions to the stock markets, changes in interest rates, and even currency movements.

Since it’s impossible to predict financial markets accurately, risk management is a crucial aspect of any company’s long-term plans. Business owners must try to anticipate potential risks by preparing strategies to cope with any adverse events.

 

[Henrywrites]

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 a lot of risk as you rightly mentioned and financial risk is not the highest. I understand that we need money to handle certain things, but when faced with greater risk such as market risk, then there is very little that you can do.

 

[Patrik]

Not really, business can still face issues even when being fine from the financial side, you can see lot of people having lot money and businesses and none of those businesses are doing well in terms of performance

 

[Veetos12]

I don't that there is another risk greater than financial risk because every business out there is set up for the purpose of profit making. Now if profit is out of business because of a decision related to risk taking, the business can fold up or find it hard to get its feet on the ground again.

 

[Emma Aneni]

Job comes with little to no financial risk whereas business involves a much greater risk.In time of financial crisis in business,one can also end up losing their personal assets whereas the one with a job can always enjoy the satisfaction of going home and live on its savings for time being.

 

[ossai]

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 and You should be aware of all financial risks. Knowing the ... It is expensive to build a business from the ground up. ... A high proportion of debt indicates a risky investment.

 

[Debola]

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?

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.

 

[Briangsam]

The financial risk would definitely rank so highly because without finances, there is no business. But the risk of the government changing a policy could crash the whole business. So that is another risk.

 

[Donkiz]

There are lots of risks involved in start and managing a business, and financial risk is seen as the most important. The reason for this is because most people believe that no matter the problem a business is going through, if there's enough fund to keep the business afloat, it's just a matter of time before the business bounce back. But if there's no fund available to keep the business going, the collapse of the business becomes inevitable.

 

[Achawaskey]

I don't think there is such risk, because it carries so much burden and tension for you to succeed, even labour has to accounted for too and emotions if not properly checked can lead to serious health issues.

 

[Joseph555]

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?

Although financial risk might be outstanding, it's pertinent to that lack of adequate planning and strategies as you said can also impose financial break to the business too, so it shouldn't be avoided.
While being financially diligence, one must also plan to succeed.

Post automatically merged: Feb 5, 2021

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?

Although financial risk might be outstanding, it's pertinent to that lack of adequate planning and strategies as you said can also impose financial break down to the business too, so it shouldn't be avoided.
While being financially diligence, one must also plan to succeed.

 

[Zamaney]

Financial risk and business risk are two different types of warning signs that investors must investigate when considering making an investment. Financial risk refers to a company's ability to manage its debt and financial leverage, while business risk refers to the company's ability to generate sufficient revenue to cover its operational expenses.

 

[Aniwhyte]

There are a lot of risks in business but in my opinion I think financial risk is the highest of them all, e.g taking a loan to start up a business and the business didn't actually goes down well as planned, I really don't think there is any other risk that you can mention that is greater than this.

 

[Georgeadawara]

It depends on the type of business you are moving on with not all business are having a high risk of losing Money. You can choose a business that can have may be only 2 -3 percentage of risk on it and some of the business are full of risk such as trading if you are not use to it don't even start it because you may end up losing your money.

 

[Greatguy1]

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?

change in policy could be a risk that is always unforeseen but has adverse effects on businesses. With every policy pronouncement by government comes in the risk that some business somewhere will be greatly affected. This is why the budget is very important and financial policy statement should be followed closely.

 

[Ryeetar]

Financial risk is the highest risk of business because if you are not careful you would go into debts, imagine collecting a loan from a friend or a bank only to promise to pay back in few months time using your mortgage as a collateral then the business fails do you think the bank or friend would have you tell them any excuse?. No they would sieze all your property, and if still not enough to cover up you can as well end up in jail.