WhiteHorse Finance

1. Market Risk: Whitehorse Financial company operates in the highly competitive and volatile financial market. Economic, political, and technological uncertainties may lead to unexpected changes of market conditions and interests rate, significantly affecting its profits and stock prices.

2. Interest Rate Risk: As a lender, changes in the interest rate environment can either create risks or opportunities for the company. A rise in interest rates may lead to more expensive debt payments and decreased profits, while a fall in rates may lead to higher interest income and more borrowing opportunities.

3. Credit Risk: Whitehorse Financial is continuously exposed to the risk of default losses from its loan portfolio and other credit exposures. In the event of a borrower’s decreased ability to repay a loan, the company’s profitability will suffer.

4. Liquidity Risk: Whitehorse Financial's liquidity may suffer as a result of cash outflows from loan defaults, spiking demand for liquidity, or the inability to meet short-term obligations, creating the risk of insolvency.

5. Systemic Risk: In a recession, defaults on mortgages, auto loans, business loans, and credit cards increase drastically. This raises the systemic risk, since such defaults can spread throughout the entire financial system and stump even healthy firms.