Target of the work is to study the impact of financial and economic risks to extension of food retail industry of Latvia. In the work are used scientific research methods – analysis and synthesis methods, economic analysis method of enterprises. Authors recommend enterprises of food retail industry to use for Latvia’s circumstances adapted Altmana E. model, which was created by Sorins R. and Voronova I., to estimate risk of insolvency (bankruptcy). From year 2004 till year 2007 was observed increment of turnover in food retail industry of Latvia. Starting from third quarter of year 2007 was observed decline of turnover in food retail industry. From year 2006 till year 2008 authors had studied situation of competition in food retail industry of Latvia and had studied medium financial index of food retail industry enterprises. Wherewith food retail industry of Latvia as known as industry with high level of competition where two participants of the market has a bigger part of the market than the closest followings. Authors have created classification of Latvia’s food retail industry’s financial and economic risks from year 2008 till year 2009. Major financial risks of Latvia’s food retail industry enterprises are risk of unpaid credit, risk of increment of interest, risk of increment of financial instability, risk of insufficiency of equity capital and risk of insufficiency of current assets. Major economic risks of Latvia’s food retail industry enterprises are risk of economic recession of country, risk of increment of taxes, risk of decrease of paying capacity of consumers, risk of insufficiency of credit resources and risk of goods prices changes. Because of increasing risk of economic recession of country, risk of decrease of paying capacity of consumers and risk of insufficiency of credit resources, Latvia’s food retail industry enterprises have to evaluate already existent and new shops efficiency of retailing room, expenses of room rent and operation, efficiency of employee’s duty, so as to reduce total costs of shops. Latvia’s food retail industry enterprises, using methods of risk estimation, are able to operatively evaluate probability of risk of financial instability’s increment and to prevent threats of insolvency (bankruptcy). Authors had proposed methods of financial and economic risk estimation which Latvia’s food retail industry enterprises can use to form their system of risk management.