Question

What are the types of business risk and also explain any five?
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Answer 1

Answer:

Explanation:

The types of business risk and also explain any five are:

1. Economic Risk. The economy is constantly changing as the markets fluctuate. Some positive changes are good for the economy, which lead to booming purchase environments, while negative events can reduce sales.

2. Compliance Risk. Business owners face an abundance of laws and regulations to comply with. For example, recent data protection and payment processing compliance could impact how you handle certain aspects of your operation.

3. Security and Fraud Risk. As more customers use online and mobile channels to share personal data, there are also greater opportunities for hacking.

4. Financial Risk. This business risk may involve credit extended to customers or your own company's debt load. Interest rate fluctuations can also be a threat.

5. Reputation Risk. There has always been the risk that an unhappy customer, product failure, negative press or lawsuit can adversely impact a company's brand reputation. However, social media has amplified the speed and scope of reputation risk.

6. Operational Risk.

7. Competition (or Comfort) Risk.

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.