Financial risk is defined as the effect of uncertainty on the objectives of an organisation including from the failure of the financial system. Select one: True False

In financial management, risk refers to:a.Uncertainty and potential lossb.The amount of debt a company hasc.The rate of return on an investmentd.The value of assets owned by a company

In finance, risk refers to the degree of uncertainty or the potential for loss associated with an investment decision. It's the chance that the actual return on an investment may differ from the expected return. In other words, risk is the variability of returns, and it can arise from various factors, including market fluctuations, economic conditions, geopolitical events, and company-specific factors.

. Most finance textbooks are likely to define risk as:the variability of an expected outcomethe possibility of insufficient cash flowsthe loss of principalthe devaluation of a currencyunpredictable events

In your own words, define the Concept of Risk and identify the different elements of Financial Risk.

The risk associated with the collapse or failure of a company, industry, financial institution or an entire economy is called