What is expense risk

The risk of future expenses being materially higher than that planned. This can be due to one or more of the following: Increasing costs of production and operations generally (either cost based or related to lower productivity);

What is financial risk in accounting?

Financial risk is the potential losses incurred by an investor when investing in a business that uses borrowed money. When a firm uses a large amount of debt, it incurs a significant interest expense and obligation to repay principal that makes it more likely to have financial difficulties if its cash flows decline.

What is the most important financial risk?

Market risk\n\n Among the types of financial risks, one of the most important is market risk. This type of risk has a very broad scope, as it appears due to the dynamics of supply and demand. Market risk is largely caused by economic uncertainties, which may impact the performance of all companies and not just one company.