Risk Related Guides
Risks
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A business risk is the potential for losses related to a business. Risks surround everything that a business big or small does. As such, it is common for businesses to identify risks on a regular basis in order to find ways to avoid or reduce future losses. The following are illustrative examples of business risk.LocationA family-run cafe opens a new location in the lobby of a hotel. They perform an analysis that suggests the location will receive at least 2200 customers a week. There's a chance this analysis will be wrong and few customers will visit.Exchange RateA Canadian firm enters a contract with an American firm to sell them parts for $10 USD each. The firm enjoys a 40% profit margin on each sale. However, if the Canadian dollar goes up in value margins will be reduced because sales are in USD and expenses in CAD.
TechnologyAn ecommerce site will lose millions of dollars a day in revenue if its web site goes down due to a technical failure or a information security incident.Human ResourcesA small business with three employees may have to close its doors for a few days if people get sick at the same time.|
Type | | Definition (1) | The potential for future losses related to a business. | Definition (2) | The potential that a business will not achieve goals due to chance events. | Definition (3) | The potential for losses that a business accepts in pursuit of reward. | Related Concepts | |
Risks
This is the complete list of articles we have written about risks.
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A list of common business risks.
The five things that can be done about risk.
A list of techniques for reducing risk.
The potential that you'll achieve too much of a good thing.
Any risk that people have a strong aversion too.
The surprising similarities between risk and opportunity.
The difference between risk management and contingency planning.
The common types of uncertainty in decision making and strategy.
The common types of inventory risk.
An overview of common business risk management techniques.
An overview of the risk management process.
An overview of cascading failure and resilience.
An overview of business as usual.
The difference between risk mitigation and risk reduction.
A list of common risk controls.
A definition of risk value with example calculation.
The common types of risk impact.
A definition of risk communication with examples.
Overview of the steps in a risk management process.
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