Financial risk
(both positive and
negative) to a
business
increases with the
use of non-equity
capital
Business risks
Risks associated with
production and
marketing components
of the business
Market or
price risks
Anotações:
Relates to the uncertainty in markets and prices for both inputs (purchased for the production process), and outputs (products and services for sale by the firm)
Production
risk
Anotações:
Is the variability inherent in the firm's production process
Technology
risks
Anotações:
These relate to the uncertainty caused by rapid technological change
Human
risks
Anotações:
Humans are a key source of risk. Humans are prone to mistakes, misinterpretation, and health problems
The fact that humans tend to change their goals and objectives often adds to the uncertainties facing the firm
Legal and
social
risks
Government
policy risk
Anotações:
In addition to the monetary, fiscal and trade policies, Commonwealth and State governments have various policies - both general and industry specific