Financial Risk The risk that a company will not have adequate cash flow to meet financial obligations. Investopedia Says: Financial risk is the additional risk a shareholder bears when a company uses debt in addition to equity financing. Companies that issue more debt instruments would have higher financial risk than companies financed mostly or entirely by equity. Related Terms: Country Risk Liquidity Risk Market Risk Operational Risk Risk Risk Free Asset Risk Lover Risk Neutral Systematic risk Unsystematic Risk |