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The nature of risk is uncertain, but you must know how to manage it. Risks can be classified into different types. Each company and business organization will face a particular risk depending on the circumstances. Here are some common types of risks.
- Business risks- Business creates these kinds of risks to increase profits. Risks can either help or hurt a company’s growth. For example, a business might invest in marketing a new product it produces. A scenario where a sales increase would result in a profit; otherwise, it would result in a loss.
- Financial Risks- Stock market volatility generates most of these risks. These risks cause financial hardship for an organization. Currency values and stock prices can cause a financial crisis.
- Non-Business Risks- Non-business risks are risks that are beyond the control of a business organization. Economic or political forces may cause these hazards. For example, significant economic changes will likely impact the financial sector.
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