Question

Explain the pervasiveness of risks in bus
iness. Describe various types of business
risks and the steps involved in managing business risk

Answer 1

there are many types of business risks like natural calamities, human. behaviour, change in prices, trend, theft, etc.

Answer 2

TYPES OF BUSINESS RISK

• Insurable risk :- The risks which can be record are called insurable risks. The losses which can be made good, or losses for which company can get compensation from insurance company are called insurable risks. Generally the natural and physical risk are insurable risk, example, businessman can take a fire insurance policy to recover the losses due to fire, he can also take insurance policy to get protection from flood, earthquake or from damage of assets such as bursting of boiler, etc.
• Non - Insurable Risk :- The risk for which no protection is available are called non insurable risk. Generally the economic risk and human race car known insurable risks. The businessman cannot get compensation for change in demand or loss due to negligence or careless of employees.
• Speculative Risks :- Speculative risks involve both the possibility of profit as well as loss. Example - Change in demand, price, fashion,etc.
• Pure risks :- Pure risk involve only possibility of loss or no loss. Their occurrence results in loss and no currency means loss and no currency means no loss. Example - chance of fire, theft,strike, etc.