The financial risk is related to the uncertainty in the business operations of the firm. financial risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, the overall economic conditions.

The future expected profit from operations and the future expected capital investments are tried to be forecasted without certainty.

Financial risk is the additional risk borne by the stockholders when the company raises debt financing.

Financial risks involve financial transactions, such as company expectations  and competitions  to go into default.

Risk assessment is a general term used across many industries to determine the likelihood of loss on an asset, loan, or investment