business risk

  

Definition

The probability of loss inherent in an organization's operations and environment (such as competition and adverse economic conditions) that may impair its ability to provide returns on investment. Business risk plus the financial risk arising from use of debt (borrowed capital and/or trade credit) equal total corporate risk.

Use business risk in a sentence

  • There is always an inherent business risk assumed by all parties involved that often goes unspoken as the eyes are always on the prize.

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  • While we wanted to add a new product to our current line-up, our investors decided it was not worth the business risk.

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  • You need to understand what the business risk of any new project is before you decide to fully take it on.

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