Explain the concept of internal and external techniques of risk
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Internal Risk Factors
Internal risks are faced by a company from within its organization and arise during the normal operations of the company. These risks can be forecasted with some reliability, and therefore, a company has a good chance of reducing internal business risk.
External Risk Factors
External risks come up due to economic events that arise from outside the corporate structure. External events that lead to external risk cannot be controlled by any one company or cannot be forecasted with a high-level of reliability. Therefore, it is hard to reduce the associated risks.
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