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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With F
  5. Financial Risk

Financial Risk

Definition of 'Financial Risk'

The additional variability in a firms returns to shareholders which arises because the financial structure contains debt.

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Related Terms

Factor Risk / Non-Factor RiskDiversifiable RiskEmerging MarketsMarket RiskPrice RiskRelevant RiskRisk LoverRisk PremiumRisk TransformationSecurity Market LineCredit RiskEvent RiskSystemic RiskTranslation RiskSyndicated LoanBankruptcyCity of LondonFinancial SecuritiesArbitrage Pricing TheoryBasis Risk

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