Venture capital is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth.
Venture capital funds are pooled investment funds that manage the money of investors who seek private equity stakes in startups and small- to medium-sized enterprises with strong growth potential.
The risk management process is a framework for the actions that need to be taken.
- Step 1: Identify the Risk
- Step 2: Analyze the Risk
- Step 3: Evaluate or Rank the Risk
- Step 4: Treat the Risk
- Step 5: Monitor and Review the Risk
Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default.
Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent.
Financial risk is the possibility of losing money on an investment or business venture. Some more common and distinct financial risks include credit risk, liquidity risk, and operational risk.