Why Do Individuals and Businesses Take Risks?
What risks might a business encounter?
Risks Sources or Causes
Controllable and Uncontrollable Risk
6.1b Uncontrollable Business Risks
Natural risks
Human risks
Controllable risks
Uncontrollable risks
FIGURE 6.1 Uncontrollable Business Risks
Economic Risk
Geographic Risks
What type of geographic risk might a business be subject to?
Cultural Risk
Political-Legal Risk
6.1c Controllable Business Risks
A pure risk is a situation with an opportunity for a future financial gain.
A risk is a situation with the possibility of either financial loss or gain.
Government regulations of business can create a risk.