Business Risk

Business Risk implies uncertainty of

profits or danger of loss to some
unforseen events in future. It means
possibility of of unfavourable occurance.
It may be defined as the possibility of an
adverse deviation from a desired outcome
that is expected.

Business risk is influenced by numerous

factors:
Sales volume
Per-unit price
Input costs
Competition
Overall economic climate
Government regulations

Nature:
Uncertainty
Essential part of business
Profit is the reward
Degree of risk and the size of business
Cannot be evaluated easily

Causes:
Natural Causes
Human Causes
Economic Causes
Physical Causes
Technological Causes
Political Causes