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.

Tactics for disarming a loaded question.

Lists of business metrics.

Sustainable competitive advantage is dead, long live transient advantage.

People cling to information like a frog adrift in the ocean clings to a coconut.

Recently on Simplicable

Long Tail As A Strategy

posted by Anna Mar
A long tail is the type of thing that gets statisticians excited.

Business Models

posted by John Spacey
How your business captures value.

20+ Types of Marketing Strategy

posted by Anna Mar
Strategies to handle different market positions and competitive challenges.

Strategic Planning Guide

posted by Anna Mar
A guide to developing business strategies.


about     contact     sitemap     privacy     terms of service     copyright