Business risk management is the possibility that a business will meet failure in its upcoming tenure. It is the probability of incurring a loss instead of a profit. Irrespective of the fact that multiple factors are involved in the materialization of this option, Escrow Consulting Group helps you to minimize the risk . We help you choose a capital structure that matches your financial position at all costs.
The four types of business risk are:
- Strategic risk
The business fails to implement its business model correctly. As the company strategy is bound to become in-effective over the course of time, a business needs to eliminate the risk of failure of reaching its goals.
- Compliance risk
Compliance risk is the risk of failure to comply with laws. This is particularly relevant in the industries that are regularly regulated. The wine industry is a vivid example in this regard.
- Operation risk
Operational risk is the risk that day-to-day operations of a business will fail. This relates to the failure to perform.
- Reputational risk
Reputational risk refers to the ruining of the reputation of a business. The reasons may be different, and can be either linked to other types of business risks, or external factors. As such, it often leads to the loss of customers and brand loyalty.
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