Working-capital risk is the exposure created by the cash locked in receivables and inventory and released through payables, and by the danger that efforts to free that cash damage operations. It matters to a board because working capital is often the largest controllable call on cash, yet squeezing it too hard can starve production, alienate suppliers or push customers away. This report explains how the cash-conversion cycle is analysed in your chosen jurisdiction and industry, the indicators of deteriorating working-capital health, the scenarios where optimisation backfires, the realistic impact ranges, and the balanced levers available. It also sets out when to engage treasury, commercial and operational specialists, framed as research to inform working-capital decisions rather than as advice on any specific customer or supplier arrangement.
Reference material for informed readers, not advice.
