Revenue risk refers to the uncertainty that projected revenues may not materialize as expected. Risks include economic downturns reducing development activity and associated charges, provincial governments changing grant programs, legal challenges to fees or charges, assessment appeals reducing the tax base, and major employers leaving (reducing commercial assessment). Municipalities manage revenue risk through diverse revenue sources, conservative estimates, and reserve funds to buffer shortfalls. Risk assessment considers both likelihood and potential impact of various scenarios. Budget documents may identify key revenue risks and mitigation strategies. Excessive revenue risk threatens service sustainability and financial stability.