A business risk is a circumstance or factor that may have a negative impact on the operation or profitability of a company. Sometimes referred to as company risk, a business risk can be the result of internal conditions, as well as some external factors that may be evident in the wider business community. Internal factors may also result in the development of significant business risk for the investor. Often, these are factors that can be identified and corrected. When it comes to outside factors that can create an element of business risk, one of the most predominant risks is that of a change in demand for the goods and services produced by the company. In general, any investor will consider the relationship of a company’s securities and the business risk associated with the company before choosing to invest in the future of the corporation.
A business risk caused by internal factors can always be reduced.
A business risk is a result of internal and external factors.
A business risk is a circumstance that may affect the company’s operation or profit.
A business risk caused by external factors cannot be controlled.