Financial
Risks

Financial Risks

Financial Risks are a specific category of risks that have a direct impact on the financial position of the firm or organization. The impact can be on its earnings, cash flow, liquidity, debt maturity profile or balance sheet. The impact of Financial Risks will impact, in the short medium or long term, the firm or organization’s ability to achieve its longer term business and financial goals.

Under the 52 Risks® framework there are 16 Financial Risks. The risks are:

• Revenue Risk
• Expense Risk
• Financial Leverage Risk
• Cash Flow Risk
• Liquidity Risk
• Loan Agreement Default Risk
• Asset Valuation Risk
• Capital Expenditure Risk
• Hidden Liabilities Risk
• Debtor Default Risk
• Commodity / Input Price Risk
• Interest Rate Risk
• Currency Risk
• Financial Model Risk
• Refinance Risk