Business Risk

Business risk-Business is uncertain because there is probability of losses which is not in control of businessmen.There are many risks in business like demand for product declined due to change in fashion,tastes, preferences of the customers or loss by fire,theft etc.
               
      Nature of Business Risk

✓Profit is the reward for bearing Risk-Business is the reward of bearing risk because in business"no risk no gain"because entrepreneur bears risk with the expectation of earning Profit.

✓Risk is essential part of business-Risk is essential part of every business because every businessmen have to bears risk to earn profit .

✓Business Risk due to uncertainty-There are many risks in business due to uncertainity.Uncertainity means what is going to be happen in future like change in consumers tastes ,preferences demand,change in govt policy etc these are the risks who makes business uncertain.

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              Business risk.

 Cause of Business Risk...

There are 4 causes of business risks..

1) Natural causes-

In this those causes are included in which human beings have no control over it.Natural causes like earthquake,flood,famine etc these affects business a lot because businessmen cannot make preparation against it because it is uncertain.

2)Human causes-In this,causes related to human beings are included means business suffer due to employees of organisation.it includes

•Dishonesty of employees.
•strike by employee.
•Employee leak secret information.
•Emoloyee commits fraud .
•Employees waste organisation resources.
Due to these causes business incurr heavy losses.

3) Economic causes-In this economic causes are included these are👇•Change in price ,taste, preferences etc
•Government tax policy
•price fluctuation
•Demand policy.Due to these businessmen always in risk because they lead heavy losses.
4) Physical causes-In this all physical causes are included like •change in technology
•Old use of technology 
•Mechanical defects are included.

                     Types of Business Risk..
✏️Insurable Risk- Risk which are recoverd by insurance company are called Insurable risks.Insurance companies provide protection against these risks like fire, theft, earthquake,flood etc.Insurance companies provide compensation against loss occur due to these Insurable risks.

✏️Non-Insurable Risk -Risk which are not recovered by insurance company are called Non-Insurable risks like economic risks and human risk .Businessmen cannot get compensation against these risks eg change in demand, carelessness of employees etc..😊

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