This chapter explores the management of financial risks in circular economy (CE) investments, highlighting the tools and strategies needed to overcome persistent financing barriers. While CE projects promise resilience and resource efficiency, they are often perceived as high-risk due to technological novelty, uncertain markets, evolving regulations, and environmental liabilities. The chapter identifies these risk typologies and examines how financial institutions are responding through ESG integration, blended finance, credit guarantees, and insurance innovations tailored to SMEs. It also analyzes the role of risk-based pricing instruments, such as the Circular Risk Scorecard, and portfolio diversification strategies in improving the risk–return profile of circular investments. The findings suggest that circular investments are not inherently riskier than linear ones; rather, they require new analytical approaches and tailored instruments. Among others, the study recommends that ESG criteria be systematically mainstreamed into financial risk assessment frameworks and that blended finance and credit guarantees be significantly scaled to de-risk pioneering projects, crowd in private capital, and accelerate the global circular transition.