Question

explain the concept of business risk and it's cause?
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Answer 1

Answer:

Business risk refers to the uncertainties that leads to unprecedented profits or losses. The causes may be as follows: Natural Calamity: Natural calamities like flood, earthquake, famine cannot be controlled. Such calamities result in a great loss of property and resources.

Answer 2

Explanation:

Business risk :-

Business risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail. Anything that threatens a company's ability to achieve its financial goals is considered a business risk. There are many factors that can converge to create business risk. Sometimes it is a company's top leadership or management that creates situations where a business may be exposed to a greater degree of risk.However, sometimes the cause of risk is external to a company. Because of this, it is impossible for a company to completely shelter itself from risk. However, there are ways to mitigate the overall risks associated with operating a business; most companies accomplish this through adopting a risk management strategy.

=>> Causes of Business Risks :-

• Natural causes. Natural causes of risk include flooding, earthquakes, cyclones, and other natural disasters that can lead to the loss of lives and property.

• Human causes. Human causes of risk refer to negligence at work, strikes, work stoppages, and mismanagement.

• Economic causes.