Types of Business Risk

What is "Risk?"

Defined:

1) The exposure to the chance of loss, a hazard, or dangerous possibility

2) A measurement, as in the degree of probability of such loss (as in the level of risk).

When defined by a layman, he would say risk is simply "the 'chance' that a calamity will occur".

There are many types of risk that Businesses and Institutions face. These risk vary according to what the individual business' objectives are. Again, there could be many, but a few common risk are:

Risk of improper processing (operational)
Internal & External Fraud risk
Employment risk
Regulatory/legal risk
System risk

Sales/Market risk
Client Relationship risk
Business continuation risk
Risk to assets (multiple risks)