Risk Factors (financial)

Financial risk factors refer to the potential sources of financial loss or variability that can impact an individual's or organization's financial health. These include market fluctuations, credit defaults, interest rate changes, inflation, and liquidity issues. Essentially, they represent uncertainties that can negatively affect investments, cash flow, or overall financial stability. Recognizing and managing these risks helps in making informed decisions and developing strategies to minimize potential adverse effects on financial resources.