- Economic Downturns: Recessions and economic slowdowns can severely impact a company's revenue and profitability. - Poor Management: Mismanagement, including poor strategic decisions and financial mismanagement, can lead to insolvency. - High Debt Levels: Excessive leverage can make it difficult to meet debt obligations, especially in a rising interest rate environment. - External Shocks: Events like geopolitical conflicts, natural disasters, or pandemics can disrupt business operations and impact financial stability.