Business Risks Flashcards
Where do business risks arise from?
Nature of the operations and products
What are the 7 types of risk?
Strategic
Product
Commodity Price
Product Reputation
Operational
Contractual inadequancy
Fraud and Malfaesance
What is a strategic risk?
Risk that strategy will fail
What is a product risk?
Risk of failure of new product
What is commodity price risk?
Risk of rise in prices e.g. oil
What is a product reputation risk?
Risk of change in product reputation
What is an operational risk?
Risk that business operations may fail
What is a contractual inadequancy risk?
Risk that terms of contract do not fully cover a business against all possible outcomes
What is fraud and malfaesance risk?
Malfaesance means doing wrong or committing an offence. Might be exposed to risks of fraud, or of actions by employees that result in an offence or crime.
