Financial Risk Disclosure
/ˈfaɪnænʃəl rɪsk dɪsˈkloʊʒər/
Definitions
- (n.) The legal obligation of a party, typically issuers or financial entities, to disclose potential financial risks to stakeholders, ensuring informed investment decisions.
The company's annual report included a comprehensive financial risk disclosure outlining market and credit risks.
- (n.) A mandated statement in contracts or securities offerings that informs parties of potential financial losses or uncertainties.
The prospectus contains a financial risk disclosure section to alert investors about currency fluctuations.
Forms
- financial risk disclosure
Related terms
See also
Commentary
Financial risk disclosures are critical in securities law and corporate reporting, aiming to provide transparency and protect investors; precise and clear drafting minimizes legal liability.
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.