What is an example of risk in a business world? -

Risks can come from uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attacks from an adversary.The risk that a company will not have adequate cash flow to meet its operating expenses. A company s risk is composed of financial risk, which is linked to debt, and risk, which is often linked to economic climate. If a company is entirely financed by equity, it would pose almost no financial risk, but, it would be susceptible to business risk or changes in the overall economic climate.

Does a cell phone company decide to spend $50,000,000 for all the towers it needs in order to expand their service to a new city? With no guarantee anyone in that town will buy that company s cell phones?

Investing alot in a fledgling company.