Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store


Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

69.21% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

Financial Risk

Financial Risk

What is financial risk?

Financial risk is a possible risk that a company won’t be able to pay back all the money that it owes its creditors. Thereof, investors will lose their invested money. The bigger debt the company has, the higher the potential financial risk of not meeting the obligations.

Any person, who is into investing and trading, should be aware of risks that can occur. It’s something, that companies are exposed to. The consequences of financial risks associated with the financial results of the company are not only financial losses, but also the bankruptcy of the business.

Potential financial rick should be taken into account at the moment of deciding whether to invest in the certain business or not. There are several tools available to determine how risky investing in the particular company is:

  1. Fundamental analysis is the way to calculate the value of the company by analyzing all aspects in general, such as its earnings, assets etc.
  2. Technical analysis is the analysis of the company’s share prices and trading volumes.
  3. Quantitative analysis is the way of defining certain risks using mathematics and statistics.

What types of financial risks exist?

Credit risk A counterparty is unable to repay its debts
Liquidity risk Company’s money flow is poor
Currency risk Company is influenced by currency changes
Foreign investment risk Overseas assets can be in danger
Asset risk The value of the company’s asset can fall

Various types of risks can have different impact on the company in question. So, if it’s impossible to remove the risk completely, it can at least minimize it.

Financial risk analysis is a part of the analysis of the companies’ financial situations, whose actions a person wants to trade. The more stable a company's finances, the more likely that its shares will increase in price in the long run.

Check how to trade stocks with FBS.

Financial risk VS Business risk

Both financial risk and business risk are key factors in making investments, however financial risk is about company’s ability to manage its leverage and debt, whereas business risk is about company’s ability to obtain enough profit to cover its operational expenses.

In other words, financial risk is how company deals with necessary payments, and business risk is how the enterprise functionate as a profitable organization.


2022-04-13 • Updated

Choose your payment system


Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later