A start-up company is undergoing a series of operational changes. The company expects to receive a round of equity capital to finance its growth strategies. A risk manager at the company is evaluating the risk of the company as well as the company's new capital structure. The manager notes that the company has decided to switch its business focus to riskier projects upon receiving the equity funding.

Which of the following is most likely correct for the manager to conclude once the funding completes and the new projects are undertaken?