Business risk is an integral aspect of any commercial venture, encompassing the likelihood of adverse events impacting its objectives. These risks can be classified into multiple categories. Market risk pertains to fluctuations in market conditions, including economic cycles and shifts in consumer preferences. Operational risk arises from internal factors such as process failures, human error, or supply chain disruptions. Financial risk relates to uncertainties in funding, investments, or currency exchange rates. Compliance risk involves the threat of legal or regulatory penalties due to non-compliance. These risks can be triggered by a multitude of factors, including economic downturns, natural disasters, technological challenges, or inadequate risk management practices. Successfully managing these risks is essential for business sustainability and growth.
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