ENTREPRENEURSHIP

Detailed explanation-1: -A risk, in a business context, is anything that threatens an organization’s ability to generate profits at its target levels; in the long term, risks can threaten an organization’s sustainability.

Detailed explanation-2: -Business risk arises due to uncertainties. Uncertainty is when it is not known what is going to happen in future. Examples of uncertainties that affect a business are, change in government policy, change in demand, change in technology, etc.

Detailed explanation-3: -What is reputational risk? Reputational risk is the damage that can occur to a business when it fails to meet the expectations of its stakeholders and is thus negatively perceived. It can affect any business, regardless of size or industry.

Detailed explanation-4: -strategic risk-eg a competitor coming on to the market. compliance and regulatory risk-eg introduction of new rules or legislation. financial risk-eg interest rate rise on your business loan or a non-paying customer. operational risk-eg the breakdown or theft of key equipment.