business risk
Enterprise's potential downside
Business risk is the possibility that a company's operations, decisions, or market conditions will negatively affect its profitability or survival.
It encompasses factors like competition, changing consumer demand, regulatory shifts, and operational failures—distinct from financial risk, which concerns debt and capital structure.
The new product launch carried significant business risk.
Managing business risk involves strategic planning, diversification, and contingency measures.
- market competitionFirms contending for sales
- market volatilityRapid price fluctuation severity
- economic downturnDecline in financial activity
- human errorMistakes by people
- ethical misconductMorally wrong professional behavior
equipment failure · currency fluctuations · cash flow problems · cost overruns · supply chain disruption · product recalls · natural disasters · labor strikes · hostile takeover · data privacy · cyber attack · reputational damage · bad press · insolvency · litigation · mergers and acquisitions
business risksure thing
Guaranteed outcome or agreement
predictability · stability · safe bet · steady state · known quantity
business riskfinancial security
Reliable access to funds
safety · security · protection · capital preservation · business insurance
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