Title: Explain the nature and types of business risk.
Course: Marketing (12164) > Section: Understanding Risk Management

Explanation should include

- economic risks (e.g., changes in demographics, business cycle, competition, government regulations)
- natural risks (e.g., perishability, weather, fires)
- human risks (e.g., employee theft, employee incompetence, accidents, shoplifting, fraud, computer-related crime).

Process/Skill Questions:

- What types of risks are associated with a new product?
- How do risk factors affect business decisions?
- What are ways that companies can protect themselves from business risks?
- What is a pure risk? What is a speculative risk?
- How can a business protect itself against the risk of loss from fire, theft, or natural causes?