MANAGEMENT

Detailed explanation-1: -Economic Risk Definition. Economic risk is referred to as the risk exposure of an investment made in a foreign country due to changes in the business conditions or adverse effect of macroeconomic factors.

Detailed explanation-2: -Business risk usually occurs in one of four ways: strategic risk, compliance risk, operational risk, and reputational risk.

Detailed explanation-3: -Economic Causes: Economic causes of business risk arise from changes in the different economic factors such as increasing competition, changing market conditions, increase in price of raw materials, production cost and wages.

Detailed explanation-4: -Credit risk, liquidity risk, asset-backed risk, foreign investment risk, equity risk, and currency risk are all common forms of financial risk.

Detailed explanation-5: -Widely, risks can be classified into three types: Business Risk, Non-Business Risk, and Financial Risk.