Tag: business risk

Business risk is the possibility of suffering losses due to a certain event in the business environment. It can include any potential threat that may have a negative impact on business operations or assets, such as financial losses, reputational damage, legal liability, or strategic disadvantages. Business risk management is the process of identifying, assessing, and addressing potential and relevant threats to an organization in order to mitigate their impact. Companies may employ risk management tools, such as quality control practices, training, and financial hedging, to effectively manage potential business risk. It is important to understand the various sources of business risk in order to effectively reduce them.