Assessment should include analyzing all aspects of business that expose it to factors that could reduce profits or cause it to fail. Types of risk include
- strategic risk
- compliance risk (i.e., regulatory)
- operational risk
- reputational risk.
Process/Skill Questions:
- What risks are faced by business owners?
- How do business risks affect profits?
- How do business risk factors affect business decisions?
- How can companies protect themselves from business risks?
- What are examples of internal risks? External risks?
- How can financial risk be minimized?
- Why is it important to identify the risks of the business and include them in the business plan?
- What are some compliance risks associated with running an international business?
Teacher Resources: