Skip to content
Solved Assignments

Business and Financial Risks

An assignment discussing various business and financial risks, including risk management strategies.

Preview 4 of 13 pages

See the first 4 pages exactly as they appear in the document.

  1. Page 1
    Read page 1 as text

    Business and Financial Risks 1 Running Head: Business and Financial Risks Business and Financial Risks Your paper on Business and Financial Risks provides a comprehensive overview of the various risks businesses face, including operational, strategic, innovation, employee, compliance, environmental, technological, health and safety, political, and financial risks. It also explores how organizations measure these risks to assess their impact on business operations and profitability.

  2. Page 2
  3. Page 3
    Read page 3 as text

    Business and Financial Risks 2 Business Risks In the present competitive business environment, the possibility of risks is normal , and in most of the situation , its effect creates an adverse environment for business , such as huge profits or loss es in the business, bankruptcy, and others. Therefore, business risk is a term that basically refers to the possibility of inadequate profits or even losses in case of uncertainties (Spedding & Rose, 2008). There are several examples that can be considered as business risks, such as changes in tastes, strikes, preferences of consumers, change in government policy, increased competition and obsolesce or change etc. It is considered that e very business organization generally holds various risk elements when they do the business in domestic or global market . At the same time, b usiness risk implies uncertainty not only in profits , but also in the danger of loss and the events that could pose a risk because of so me unforeseen events in the future that causes business es to fail forever. Additionally, business risks in the present competitive environment are classified based on the influence by two major risks, such as internal business risks and external business risks (Spedding & Rose, 2008) . The internal risks basically aris e from the events taking place within the organization and external risks arise from the events taking place outside the organization . Therefore, some business risks can be discussed as below. Operational Risks : In business, operational risk is the main risk that always arises in the working process. This is basically the part of the manufacturing operation and administrative procedures. When the organizational procedures seen as disorgani z ed or inaccurate record keeping, and outdated or faulty IT systems, as well as interruptions in the supply chain , these entire activities creates operational risks (Tattam, 2012). In case of these types of highly

  4. Page 4
    Read page 4 as text

    Business and Financial Risks 3 operational risks in the organization, the unreliable environment of the customers and potentially lose all data can be a possibility. Strategic Risks : The strategic risks of the business can be seen as an inability to achieve goals or objectives of the organization. Whenever any business plan do es not meet the decided aim and objectives according to the outlined in the business plan ; the strategic risk happens adversely and destroy the hope of the company . Basically, it is considered that the strategic risks come out due to the effects of changes in customer demand or technological evolutions that pose threats to the business (Andersen, 2006). When the customers view the products and services as overprices, or dull and outdated in the market; the strategic risks happen for the company. Innovation Risks : The innovation risk is also one of the main parts of the business risks because of the threats about stealing the Intellectual Property Rights, and Patents, as well as Copyright of the products. Further, the other risk that can be possible in the business is the innovative products of the c ompetitors that try to be one step ahead in the competitive market (Lam, 2014). Moreover, the innovation in the form of market ing and promotional initiatives in the marketing plan, as well as staff training and embracing new technology are also the innovative risk in the business scenarios . The innovative risks can be possible due to a lack of development. Therefore, it can pose a serious risk to a business progressing or growing in the competitive market. Employee Risks : It is a true fact that employees are vital for business success, but there are risks associated with the employees in the business, such as more absents of the employees . Further, the other risks in the business are illness of k ey staff and unable to work by the e mployee s in the office in case of an important work or extended time or an industry strike action (Lam, 2014) .

9 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Finance study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.