Enterprise risk & controls · Core

Financial risk

Also called: finance risk

ELI5

Risk arising from financing, markets, liquidity, credit or financial performance.

Used in conversation

“The board will ask what happens if financial risk moves outside tolerance.”

Pitch context

You will see “Financial risk” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches enterprise risk & controls.

Why it matters: In enterprise risk & controls, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 3

Direct term-level sources and supporting source families.