Question

explain the pervasiveness of risk in business .describe various types of business risk and the steps involved in managing business risk.

Answer 1

risk is that in which there is no chance of getting the profit or return back. following are the risks which are involve in business:
marketing risk
fall in the value of price due to any reason
fall in the demand
cheating
loss of stock due to fire or theft

Answer 2

Answer:

Typical risks a business faces can be divided into Internal and external risks.

Internal Risks Include:

Financial Risk: That a business might loose too much money or might not have enough money to keep it going

Technological Risk: That the service or technology they are using manufacturing goods becomes out-dated and they are left behind.

Human Resource: Bad employees who are ill-equipped and not hardworking can pose a risk

External Risks include:

Socioeconomic and political: This is an example of how political up heavel, social changes, and economic recessions and depression can hamper a business. It is not within the control of the company but it can have an impact on them

Natural Disasters: Flooding, earthquakes, etc can wipe a business out completely

Competition: Competitors always need to be looked out for! They always want to beat you and take your best customers

The best way to mitigate these is to carry out a risk assessment on at least an annual basis and invest thorough in R&D to stay ahead of each problem