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33 Small Business Risks

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A small business risk is the potential for negative outcomes related to your business. Small businesses are particularly vulnerable to risk as things can be tough enough for a new venture even when things go smoothly. Risk can be managed by identifying and treating them. The following are common small business risks.

Budget Risk

Going over budget.

Commodity Risk

The price of basic commodities such as fuel, foods and materials.

Competitive Risk

New competition or competitive actions such as a price war.

Compliance Risk

Being deemed to have violated a law or regulation. This can happen despite your best efforts to comply to the law. For example, you may be responsible for certain actions of employees.

Concentration Risk

A business that is too focused on a particular market. For example, a farmer who only grows corn is vulnerable to its price.

Contract Risk

When partners, suppliers and employees fail to meet their contractual obligations.

Credit Risk

The risk that a customer won't pay what they owe you.

Exchange Rate Risk

Fluctuating exchange rates that increase your costs or decrease your revenues.

Dispute Risk

The chance of a costly dispute with a supplier, partner, customer or member of the public.

Economic Risk

The chance that the economy will experience a downturn.

Financial Risk

The risk of a financial loss such as a failed investment.

Force Majeure

A major negative event such as an earthquake, storm or war.

Health And Safety Risk

A health or safety incident related to your business.

Infrastructure Risk

Infrastructure issues such as a network outage.

Innovation Risk

The chance that a new innovation will invalidate your business model.

Interest Rate Risk

A negative interest rate change such as a floating rate loan when interest rates go up.

Legal Risk

A legal event such as a lawsuit.

Liquidity Risk

Running out of cash.

Local Economy Risk

The risk of a decline in the local economy.

Operations Risk

Failure of a business process such as a late delivery that requires you to pay penalties.

Passive Risk

Risk is often associated with action, but inaction can also be a risk. For example, sitting still while a competitor rapidly improves.

Procurement Risk

An inability to procure what you need at the right price, quality and time.

Quality Risk

When your products or services fail to meet the expectations of customers resulting in poor ratings and declining business.

Refinancing Risk

The chance that you won't be able to refinance when a loan expires.

Regulatory Risk

New laws that interfere with your business model or profitability.

Reputational Risk

An negative event or chain of events that damages your reputation.

Resource Risk

Inability to obtain resources such as skilled employees.

Seasonal Risk

A special risk related to a business that does most of its sales in a short span of time such as a ski resort in an area with a few months of snow.

Security Risk

The potential for an information security or physical security incident.

Strategy Risk

A failed strategy such as a new product that flops.

Taxation Risk

The potential that tax laws or rates will change.

Technology Risk

Failures related to technology such as a website outage.

Weather Risk

Many businesses that have a physical location are exposed to lower sales in bad weather.
Everything that you could possible want to know about risk:
AI Risk
Risk Avoidance
Brand Risk
Budget Risk
Business Risks
Change Risk
Compliance Risk
Concentration Risk
Cost Risk
Country Risk
Credit Risk
Demand Risk
Dread Risk
Economic Risk
Exchange Rates
Existential Risk
External Risk
Financial Risk
Force Majeure
Good Risk
Human Error
Risk Identification
Infinite Risk
Inflation Risk
Inherent Risk
Interest Rates
Internal Risks
Investing Risk
Legal Risk
Liquidity Risk
Model Risk
Moment Of Risk
Natural Disasters
Negative Risk
Operations Risk
Passive Risk
Personal Risk
Political Risk
Process Risk
Procurement Risk
Product Risk
Project Risk
Pure Risk
Quality Risk
Recession Risk
Risk Mitigation
Refinancing Risk
Regulatory Risk
Reputational Risk
Residual Risk
Resource Risk
Revenue Risk
Risk Appetite
Risk Aversion
Risk Examples
Risk Management
Risk Management Process
Risk Matrix
Risk Meaning
Risk Measurement
Risk Taking
Risk Tolerance
Risk Triggers
Risk vs Issue
Risk vs Opportunity
Risk vs Uncertainty
Risk-Reward Ratio
Seasonal Risk
Secondary Risk
Security Risk
Settlement Risk
Risk Sharing
Speculative Risk
Strategic Risk
Strategy Risk
Supply Risk
Systemic Risk
Tactical Risk
Taxation Risk
Technology Risk
Risk Transfer
Unforced Error
Upside Risk
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