Poor financial flexibility can lead to several risks, including:
Inability to Adapt: A lack of financial flexibility can hinder a company's ability to adapt to market changes or economic downturns. Missed Opportunities: Businesses may miss out on lucrative investment opportunities due to insufficient funds or access to credit. Increased Financial Stress: Poor financial flexibility can result in increased financial stress, leading to potential insolvency or bankruptcy. Damage to Reputation: Consistent financial struggles can damage a company's reputation and erode stakeholder confidence.