Business risks refer to the risks a company willingly assumes to create a competitive advantage and add value for shareholders. These are the risks which arise in the design, development, production and marketing of products. In other words, business risk refers to the uncertainty about the demand for a company’s products and services. Some of these risks may arise due to internal factors while others may be due to the environment.
Risks arising due to internal factors include:
§ Product development choices
§ Marketing strategies
§ Organizational structure
Risks emanating from external factors include:
§ Macro economic risk
§ Competition risk
§ Technological risk
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