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Discussion in 'Growing and Managing a Business' started by exportuscar123, Jun 23, 2010.
what should be business risk for an business ?
Care to expand on that question? How long is a piece of string?
risk is a circumstance that may be a negative or positive impact on the operation to a company. risk can be different different type like financial risk, project risk.
Would you tell us more what business are you going to in? so we can better giving suggestion or answer?
Just about anything could be considered a risk in business. You really need to tell us about specifics in order to help you to gauge the level of risk.
I think the liquidity is the greatest danger facing business
A business risk is a circumstance or factor that may have a negative impact on the operation or profitability of a given company. Sometimes referred to as company risk, a business risk can be the result of internal conditions, as well as some external factors that may be evident in the wider business community.
When it comes to outside factors that can create an element of business risk, one of the most predominant risks is that of a change in demand for the goods and services produced by the company. If the change is a positive one, and the demand for the offerings of the company increase, the amount of risk is decreased a great deal. However, if consumer demand for the offerings decreases, either due to loss of business to competitors or a change in general economic conditions, the amount of risk involved to investors will increase significantly. When a company’s risk factor is considered to be increased due to outside factors that are beyond the control of the company to correct, chances of attracting new investors is severely limited.
Internal factors may also result in the development of significant business risk for the investor. Often, these are factors that can be identified and corrected. If flagging sales can be attributed to an ineffectual marketing effort or a sales force that is not performing up to expectations, making changes in the marketing approach or restructuring the sales effort will often result in minimizing the perception of business risk on the part of potential investors. The same is true if a company’s manufacturing facilities are not operating at optimum efficiency. Revamping the operational structure of the plants and facilities will decrease the element of business risk and result in higher profits at the same level of production and sales, which will in turn make the company more attractive to potential investors.
The main categories of business risk to consider are; Strategic, for example a competitor coming on to the market. Compliance, for example responding to the introduction of new health and safety legislation. Financial, for example non-payment by a customer or increased interest charges on a business loan. Finally operational, for example the breakdown or theft of key equipment.
Risk associated with the unique circumstances of a particular company, as they might affect the price of that company's securities.
Hi, It depends on the business type. Different type of businesses may have vary risks. First is the market investment risk. others are honest partner risk, project hiring risk, technical risk, financial risk etc.
Risk is vital to any business. If you are frightened by risk, you probably shouldn't be in business.
There is always risk in establishing any business. but always try to maintain your business according to legal issues like location, raw material employees issues and all.you can get legal help online also.
In business, just about anything is considered a risk. To help you gauge the level of risk, you need to tell us the specifics.
Any circumstance or a factor that could have a negative impact on the operation or profitability of a given company is a business risk.
Closing old thread. If the Original Poster would like it re-opened, please send me a quick PM and I'd be delighted to open it for you.