A-Z Popular Blog Top Search »
Related Guides

What is Recession Risk?

 , updated on November 27, 2015
Recession risk is the potential for an economic contraction to impact your ability to meet your goals.
A recession is often defined as an economic contraction that lasts two financial quarters or more. They can occur at the global, national or regional level. A recession typically causes economic disruption that impacts all businesses to one degree or another. In some cases, businesses selling inferior goods benefit from a recession.
Overview: Recession Risk
DefinitionThe potential for a recession to impact your ability to meet business or financial goals.
ExamplesCredit contractions in a recession may make refinancing difficult.
Demand for products and services typically declines during a recession.
A recession can result in excess capacity at factories or overstocked warehouses leading to discounting and price declines across an industry.
Risk TreatmentsAvoid
Related ConceptsFinancial Risk


This is the complete list of articles we have written about risks.
AI Risk
Risk Avoidance
Brand Risk
Budget Risk
Business Risks
Change Risk
Compliance Risk
Concentration Risk
Cost Risk
Country Risk
Credit Risk
Demand Risk
Dread Risk
Economic Risk
Exchange Rates
Existential Risk
External Risk
Financial Risk
Force Majeure
Good Risk
Human Error
Risk Identification
Infinite Risk
Inflation Risk
Inherent Risk
Interest Rates
Internal Risks
Investing Risk
Legal Risk
Liquidity Risk
Model Risk
Natural Disasters
Negative Risk
Operations Risk
Passive Risk
Personal Risk
Political Risk
Process Risk
Procurement Risk
Product Risk
Project Risk
Pure Risk
Quality Risk
Risk Mitigation
Refinancing Risk
Regulatory Risk
Reputational Risk
Residual Risk
Resource Risk
Revenue Risk
Risk Appetite
Risk Aversion
Risk Examples
Risk Management
Risk Management Process
Risk Matrix
Risk Meaning
Risk Measurement
Risk Taking
Risk Tolerance
Risk Triggers
Risk vs Issue
Risk vs Opportunity
Risk vs Uncertainty
Risk-Reward Ratio
Seasonal Risk
Secondary Risk
Security Risk
Settlement Risk
Risk Sharing
Speculative Risk
Strategic Risk
Strategy Risk
Supply Risk
Systemic Risk
Tactical Risk
Taxation Risk
Technology Risk
Risk Transfer
Unforced Error
Upside Risk
If you enjoyed this page, please consider bookmarking Simplicable.