Identify the different types of risks that a business might encounter in the marketplace.

Discussion | MBA5004 | South University Online

The different types of risks that a business might encounter in the marketplace include: financial risk, regulatory risk, market/industry risk, political risk, technology/cybersecurity risk, reputational risk, operational risk and environmental/natural disaster risk. Financial risks refer to potential losses due to fluctuations in currency exchange rates or an inability to secure financing. Regulatory risks involve non-compliance with laws and regulations which could lead to fines or other penalties. Market/industry risks are related to changes in demand for certain products or services as well as industry-wide downturns. Political risks refer to economic instability caused by policy changes or public opinion shifts while technology/cybersecurity risks refer to threats such as data breaches or hacking. Reputational risks arise when a company’s reputation is damaged due to negative publicity or customer dissatisfaction and operational risks can occur due to system failures or employee negligence. Finally, environmental/natural disaster risks refer to potential losses from natural disasters such as floods or earthquakes.