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What is Seasonal Risk?

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Seasonal risk is a term that's applied to a business that produces a high concentration of its revenue in a single season. Examples include ski resorts, ice cream manufacturers and retailers who achieve most of their sales at Christmas.
The concentration of revenue in a particular season leaves a business particularly exposed to risks such as weather or any event that disrupts sales for a few months. In many cases, seasonal risk can be mitigated by diversifying. For example, a ski resort may develop a water park to attract summer tourists.
Overview: Seasonal Risk
Type
Business Risk
Definition
A business whose revenue is concentrated in a single season.
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