From the course: Finance Foundations: Risk Management

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Five financial corporate risks

Five financial corporate risks

From the course: Finance Foundations: Risk Management

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Five financial corporate risks

- I know a CEO who likes to say, "You never go broke by making a profit." When it comes to business, truer words have never been said, but in the quest to make a profit, companies face a number of financial risks, risks that are directly related to turning a profit, managing financial market risks, and having enough cash coming in to keep the business going. Let's take a look at five financial risks companies face. The first kind of financial risks are business risks, and the first rule of business is buy low and sell high. That's how you make a profit. Business risks exist if that isn't possible because if you can't make a profit, you simply don't have a business. Of course, a business can lose money for a little while, and it's even expected when a business is starting up, but eventually, businesses need to turn a profit. Without hope of any imminent profits or any actual current profits, there isn't hope for a business.…

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