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.
|Overview: Business Risk|
|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||Positive RiskRisk IdentificationBusiness RisksRisk ManagementRisk Mitigation|