Business Risk The risk that a company will not have adequate cash flow to meet its operating expenses. Investopedia Says: A company's risk is composed of financial risk, which is linked to debt, and risk, which is often linked to economic climate. If a company is entirely financed by equity, it would pose almost no financial risk, but, it would be susceptible to business risk or changes in the overall economic climate. Related Terms: Country Risk Financial Risk Liquidity Risk Market Risk Risk Risk Lover Risk Neutral Systematic risk Unsystematic Risk |