Business Risk Human Causes
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Causes of business risk.
Business risk human causes. There is a strong relationship between risk and reward. Moreover some risks are insurable with insurance companies. The risks facing a typical business are broad and include things that you can control such as your strategy and things beyond your control such as the global economy.
The main causes of business risk are as under. Risks could be events such as fire flooding or crimes like theft and vandalism. Physical damage can present a risk to your business in a number of ways from time lost and repair costs to legal action and reputational harm if you ve failed to guard against the risks appropriately.
Natural causes of risk include flooding earthquakes cyclones and other natural disasters that can lead to the loss of lives and property. Natural calamities like earthquake flood drought famine etc. For example consider the risk that one of your employees writes the wrong amount on a check paying out 100 000 instead of 10 000 from your account.
Causes of business risks. As such these are not the risks peculiar only to business. There are certain nature factors like floods earthquake etc.
This article provides an example of how to include human factors in risk management plans and an illustration of some of the types of problems that can occur when it comes to employees. One of the hardest risks to quantify and manage within any organisation is people. However the overall cost of employing someone isn t just their paycheck.
Your business or organization needs employees to get work done and revenue booked. That s a people failure but also a process failure. A business risk is a future possibility that may prevent you from achieving a business goal.
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