Business Guide

business   »  risk   »  business risk explained

Business Risk Explained

        posted by , May 30, 2013

Risk is both bad and good at the same time.

Risk is the basis for all business results. A business that doesn't take any risks can't grow or adapt to change.

Despite its importance, risk is almost always a bad thing.

In other words, risk is a bad thing that shouldn't be minimized.

Definition of Business Risk

Business risk is the chance of losses and negative consequences that result from business strategy and operations.

Overview of Business Risk

Risks are strategies, investments, processes, procedures & systems that have some chance of failure. Risks lead to negative events that have business consequences.

business risk

Examples of Business Risks

Risk is inherit in any business activity. For example, a bank that makes a loan to a client risks default on the loan. A company the develops a new product risks failure of the product on the market. A government that constructs a bridge risks cost overruns or project failure.

more:65 Business Risks
22 Strategic Risks

Risk Management

Risk management is the practice of identifying, assessing, prioritizing and controlling risk.

Risks are identified and their probability and impact is assessed. Risks are then either accepted, reduced, eliminated or transferred.

3 Shares Google Twitter Facebook

Related Articles

Everything you wanted to know but were scared to ask about Risk Management.

You've worked hard to cultivate a relationship with the customer. You've helped them to understand your product inside-out. You've addressed their objections and given them compelling reasons to buy. Now it's time to get to the point — close!

Everything you wanted to know but were scared to ask about Risk Management.

Business dashboard design is a skill — are you dashboard savvy?

Attract, hire, train, assess and reward employees.

Recently on Simplicable

RACI Responsible Versus Accountable

posted by Anna Mar
There's often confusion about the difference between Responsible and Accountable. Even seasoned program managers sometimes confuse the two. Here's the difference.

What Are Strategic Drivers?

posted by Anna Mar
Strategies that fail to adapt to these forces are a recipe for disaster.

20+ Types of Brand Symbol

posted by Anna Mar
A brand symbol is something that represents the business, practices, customer experience, products, employees and ideas behind a brand.

Entertainment Over Enlightenment: What Your Customers Really Want

posted by Anna Mar
Your customers are driven by emotions. They want to be intrigued. They want to laugh. They want to see interesting people do interesting things.


about     contact     sitemap     privacy     terms of service     copyright