Financial Risk
/ˈfaɪnænʃəl rɪsk/
Definitions
- (n.) The possibility of monetary loss or uncertainty in investment or financial transactions, often assessed for legal compliance and contractual obligations.
The contract includes clauses to mitigate financial risk associated with currency fluctuations.
- (n.) The exposure of a party to potential legal liability arising from financial activities or decisions.
The company faced financial risk due to breaches of fiduciary duty in its lending practices.
Forms
- financial risk
- financial risks
Related terms
See also
Commentary
In legal documents, clearly define the scope of 'financial risk' and distinguish between market risks and legal liabilities to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.