Question

what are the different sources of risk?​

Answer 1

Answer:

hey mate,,

There are different sources of risk in agriculture operation: production risk, marketing risk financial risk, legal risk and human resource risks .Although strategic planning is not listed as a resource category , it is critical to the overall success of any operation.

Explanation:

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Answer 2

Heya user..... ❤

Here are some different sources of risk in business.

A certain risk level is inherent in running a business, and a company cannot completely eliminate risk. However, a business can control or at least successfully manage risk. In order to do so, management must make decisions and choices regarding acceptable risk levels relative to potential profits. In this context, there are a number of sources of risk for any business to consider, including risks from the marketplace, employee-related risks, and financing risks.

⚫Risk Management:

A company must inevitably assume some level of risk to generate returns on investments that will be satisfactory to its stockholders. The key to successful risk management is maintaining a good balance between risk and reward, which involves carefully weighing potential profits against potential problems or threats to operational stability.

⚫Employee-Related Issues:

Employee-related issues are another source of business risk. Labor problems may arise that impact a company's production. The need to retain certain key personnel may result in increased wage costs. Loss of key personnel can affect the company's performance and profitability—for example, if one of the company's top salespeople takes a job with another firm, or if the company loses a key product designer. Included in this risk category is management risk—the risk of bad management decisions for a company.

⚫International Risk:

Lastly, if a company does business internationally, then there are several other potential risks: political problems, changes in tariffs or import/export laws, and risks associated with fluctuating currency exchange rates. While currency exchange rate risk can sometimes be managed through hedging activity in the foreign exchange market, events of a legal or political nature are often unpredictable and not amenable to risk management strategies.

⚫Risk:

Risk takes on many forms but is broadly categorized as the chance an outcome or investment's actual return will differ from the expected outcome or return.

⚫Unsystematic Risk:

Unsystematic risk is unique to a specific company or industry and can be reduced through diversification.

⚫Accepting Risk:

Accepting risk occurs when a business acknowledges that the potential loss from a risk is not great enough to warrant spending money to avoid it.

⚫Currency Risk:

Currency risk is a form of risk that arises from the change in price of one currency against another. Investors or companies that have assets or business operations across national borders are exposed to currency risk that may create unpredictable profits and losses.

Hope it's helpful.......... ☆(❁‿❁)☆