Business risk is basically the exposure of the factors by which any business or company may lower its profit or held a loss .Anything that threatens a company's ability to meet its target or achieve its financial goals and its future objectives may called business risk. These risks come from a various factors which affect the overall profitability of business.
for example, a company may face risks in production
risks due to irregular supply of raw materials
risks due to machinery breakdown problem
risks may arise due to fluctuations in market prices, changing trends and fashions
These are the main component of business risk:-
i- Product Risk:- product risk is related to any particular product in the market its sales and other issues
ii-Financial Risk:- financial stability of business its cash flow requirement and other finance related issues
iii-Market Risk:- market competitor ,market conditions, market growth rate etc
iv-Strategic Risk:- strategic decision of the company and its impact on business
v-Execution Risk:- execution of its strategy in business
vi-Operational Risk:- operational efficiency of the business
Discuss the components of business risk. Discuss how the components affect the variability of operating earnings...
What is operating leverage, and how does it affect a firm's business risk? a. Show the operating break-even point if a company has fixed costs of $22,000, a sales price of $36, and variables costs of $14. b. What is the break-even quantity if the price is decreased to $30? c. What is the break-even point if the price is decreased to $30 and costs increase to $19?
How do the four components of a business model affect each other? For example, how can the depth of value to customers influence the means of revenue generation?
Discuss how poverty and other social factors affect cumulative risk, resiliency and vulnerability.
1. Legislation and regulations from all levels of government will affect various aspects of business operations and the risk management aspect of business. The impact of legislation and regulations will depend on business operations/ type of business, the number of staff employed, industry sector and the structure of the business. Explain in 200–250 words: *why it is necessary to have a working knowledge of the legislation involved in business *what legislation or regulations apply to the industry area in which...
discuss, in your own words using 500 words or more, how the business process as a service (BPaaS) could reduce the risk for commercial enterprises
In a short paragraph, discuss how an organizations core competencies affect the formation of the Business Strategy.
Identify a natural hazard and discuss how to conduct a risk assessment for a business as described on page 116 of the textbook. How does hazard analysis effect business resilience?
Discuss how macroeconomic policies affect managing a business? Explain the importance of understanding the trends in the national economy. In your response, observe how the subject matter of this workshop has affected you and the business where you work (or a business with which you are familiar).
Explain one risk in the healthcare industry and how this risk can affect the financial performance of healthcare. In 150 words or more..
How would a decrease in net earnings and cash flow from operating affect investors? What are the investors going to do in the short term and the long term?