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| 1. ''Capital asset pricing model.''
| | Term debt is debt which has an agreed term or maturity. |
| | | Normally the term when the debt is drawn down would be greater than one year. |
| In the Capital asset pricing model, financial risk means the component of total risk resulting from a firm’s capital structure.
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| The more net debt there is in the capital structure, the greater the financial risk.
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| The term 'financial risk' is also used more generally to mean the wider risk of uncertain financial outcomes.
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| For example, the risks arising from not knowing the future home currency value of a forecast foreign currency receipt, or the uncertainty regarding the size of future interest payments on floating rate borrowings.
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| 3.
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| 'Financial risk' can also refer to the financial implications arising from all types of risk.
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| Especially adverse financial implications.
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| == See also == | | == See also == |
| * [[Asset beta]] | | *[[Debt]] |
| * [[Business risk]] | | *[[Term loan]] |
| * [[Capital asset pricing model]]
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| * [[Equity risk]]
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| * [[Financial asset]]
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| * [[Financial liability]]
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| * [[Financial market price risk]]
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| * [[Financial risk management]]
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| * [[Guide to risk management]]
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| * [[Operational risk]]
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| * [[Return]]
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| * [[Risk]]
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| * [[Risk taxonomy]]
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| * [[Ungeared beta]]
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| ===Other links===
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| [http://www.treasurers.org/node/8443 Masterclass: Measuring financial risk, ''Will Spinney'', The Treasurer]
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| [[Category:Manage_risks]]
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Revision as of 11:53, 30 May 2015
Term debt is debt which has an agreed term or maturity.
Normally the term when the debt is drawn down would be greater than one year.
See also
