I would suggest that this is one of the highest levels of risk. If things do not go well you will lose control which ultimately will result in loss and negative impact. I personally am very selective about which debt I utilise and what I am prepared to put on the line. We use debt facilities with our bank but are not prepared to have it secured with external assets. Using debt can be very effective, particularly due to the low rates you can access cash currently – but you need to fully understand the contract of debt and potential downsides.
If you use debt currently, what risks are linked to it. What would be the impact if you fail to meet your obligations relating to it? Can you live with this?