Question

List five risk factors to run the business. *



your answer

Answer 1

$<strong><ol><sup><table><tr><u><img>1.Corporate Governance Risk  The risk that insiders (employees) won't act in the best interests of owners (stockholders) and the community.  2. Competitive Risk  The general risk that you'll lose out to the competition.  3. Innovation Risk  The risk that the competition will outinnovate you.  4. Intellectual Property Risk  Risk related to intellectual property (e.g. the risk that intellectual property leaks to competitors).  5. Merger & Acquisition Risk  The risks related to integrating firms.  6. Business Risk  The risk that your overall business strategy and plan will be ineffective (e.g. will fail to meet revenue targets).  7. Economic Risk  The risk that the economy will go into recession. In some cases, recessions benefit a business (inferior goods).  8. Technological Change  The risk that technology investments will become obsolete.  9. Change Management Risk  The risks associated with managing change.  10. Project Risk  The risk that projects will fail.  11. Ethics Risk  The risk that your guiding principles and ethics will be breached.  12. Reputational Risk  The risk of damage to your corporate image. Reputational risk can reduce trust in your business and lead to destruction of value.  13. Sustainability Risk  The risk that you'll fail to meet sustainability objectives and targets.  Financial Risks 14. Profit Risk  The general risk that profits will fall.  15. Capital Availability  The risk that you won't be able to fund your business.  16. Asset Risk  Risks related to asset prices (e.g. real estate).$