Risks

What risks were mentioned in the video?

• Business

• Financial

• Personal

• Liquidity

What is business risk?

• anything that exposes you to the risk of losing something of value

• the risk of loss as a result of ineffective or failed internal processes, people, systems, or external events which can disrupt the flow of business operations.

• the possibility of encountering circumstances in which the company cannot operate

Select threats to the company mentioned in the video

• Inflation

• Competitor's new product
• High employee turnover

• Natural disasters
• Barriers to entry

• Business risk is different from financial risk, which occurs when a company employs significant debt in its capital structure.

• True

• False

What causes financial risk?

• ineffective management

• the use of high leverage

• inflation

Business risk increases over time.

• True

• False

Which tools were mentioned in the video?

• Porters's five forces

• Ansoff's Matrix

• SWAT Analysis