What is the relationship between leverage and risk? How does leverabge
affet the borrowing ability of an organization?

Leverage increases risk.  As risk increases, investors/lenders require
a higher potential return to compensate for it.  Therefore, an
organization will face higher borrowing costs initially and, as its
risk grows to the point where it exceeds its ability to provide a
compensating return to a prospective lender, it will encounter
difficulty in borrowing at all.

Sincerely,

Wonko