explain the nature of business risk. what are the various types of business risk faced by an enterprise
Answers
Business risk is the possibilities a company will have lower than anticipated profits or experience a loss rather than taking a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, and the overall economic climate and government regulations.
Here are seven types of business risk you may want to address in your company.
Economic Risk. The economy is constantly changing as the markets fluctuate. ...
Compliance Risk. ...
Security and Fraud Risk. ...
Financial Risk. ...
Reputation Risk. ...
Operational Risk. ...
Competition (or Comfort) Risk
Businesses face all kinds of risks, some of which can cause serious loss of profits or even bankruptcy. ... You'll get a rundown of strategic risk, compliance risk, operational risk, financial risk, and reputational risk, so that you understand what they mean, and how they could affect your business.