Business Risks Assignment Help

There are various risks that a company must consider in order to make effective strategies to reduce the adverse impact of these risks on business. Business risk management case study assignment helper, Business risks can be of two types: internal risks and external risks.

Internal Risks: Internal risks are occurred due to the events taking place within the organization. These risks are controllable, as businesses can measure the probability of their occurrence. There are some internal factors such as human, technological and physical factors that cause to internal risks. Human factors can cause to business risk in several ways such as strikes, accidents or deaths in the company, incompetence employees/managers, failure of suppliers and default in payment by debtors (Madura, 2007). A firm can also face technology oriented risk. For example, due to advancement in technology, the traditional technique of production that is used by company might face the risk of losing the market. In addition, physical factors cause to failure of equipments, damages or theft in transit of goods and third party compensation.

 

External Risks: In contrary to internal risks, external risks are those, which arise due to the events happening in external business environment. As, external factors are outside the business organization, they are beyond the control of firms. Economic factors are the main external factor that can cause to various business risks to the company. These include price fluctuations, change in customer demand, change in income and interest level, trade cycle, increasing competition, rising unemployment and fluctuations in the global economy (Kurtz & Boone, 2008). These factors cause to various risks to the company like interest rate risk, foreign currency risk, market risks and loss of customers. At the same time, unforeseen natural calamities including earthquake, flood, famine, cyclone, lightening, etc. can also cause to various risks (closing of business, loss of fixed assets, etc.) to the company. In order to successfully manage all these risks, firm should adopt an appropriate risk measurement framework like enterprise risk management (ERM) framework that is provided Committee of Sponsoring Organizations of the Treadway Commission (COSO). ERM framework provided by COSO is effective in several ways. It defines essential enterprise risk management components, which are necessary to control by the company to reduce the adverse impact of risks on business (COSO 2012). It suggests ERM principles and concepts that can be effective in order to effectively manage several business risks. Use of this framework is beneficial in order to design and implement effective ERM processes. Risk appetite, risk tolerance and portfolio view are some important concepts which help organizations in managing the risks in an effective and efficient manner. How to get business risk management case study assignment help from our experts You can avail riginal business assignment help services from our experts. We assure you that you will get authentic  content from our US and Australia assignment help experts.