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What is risk ? Enlist various kinds of risks facing a business organization.
We Have two main risks
A - Internal Risks are those risks which arise from the events taking place within the business enterprise.
1 - Human factors are an important cause of internal risks. They may result from strikes and lock-outs by trade unions
2 - Technological factors are the unforeseen changes in the techniques of production or distribution.
3 - Physical factors are the factors which result in loss or damage to the property of the firm.
B - External risks are those risks which arise due to the events occurring outside the business organisation.
1 - Economic factors are the most important causes of external risks.
2 - Natural factors are the unforeseen natural calamities over which an entrepreneur has very little or no control.
3 - Political factors have an important influence on the functioning of a business, both in the long and short term.
