Identify and discuss two systematic and two unsystematic risk factors impacting on your company.

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Systematic risk factors are those risks that affect the entire economy or industry. Systematic risks tend to be beyond the control of a particular organization, making them difficult to prepare for or mitigate. Two systematic risk factors impacting on my company would be macroeconomic conditions and changes in technology.

Macroeconomic conditions refer to economic indicators such as GDP, unemployment rate, inflation rate and interest rates which can have a major impact on markets, businesses and consumer spending habits. Changes in these indicators can influence customer buying behaviours which affects demand for our product and services, as well as our overall revenue. This could ultimately result in fluctuations in earnings and cash flow if we do not take adequate measures to protect ourselves against market volatility.

Changes in technology is another systematic risk factor that has an effect on companies across all industries due to its rapid advancements over time. New technologies can quickly disrupt existing markets by creating new products that offer improved features at lower prices than traditional offerings, resulting in decreased demand for certain products/services and more competition from new entrants into the market. As a result, it is important for us to remain informed of emerging trends so we can stay ahead of competitors by developing innovative solutions before they enter the market.

Unsystematic risk factors are specific risks faced by individual companies within their own operating environment rather than general risks associated with entire industries or economies. These risks must be managed proactively since they often fall outside of our control but still pose threats which could significantly harm operations if left unaddressed..Two unsystematic risk factors impacting my company would be supply chain disruptions and geopolitical instability .

Supply chain disruptions are caused when unexpected events occur such as transportation delays, factory shut-downs or natural disasters which hinder production material flow to our facility where goods are manufactured/assembled; this results in lost productivity since it takes away valuable time needed for completing orders on time while also increasing costs associated with solving these issues e.g., reshipping charges etc.). To help minimise this risk we actively review current suppliers regularly & conduct regular training sessions about best practices related supplier management & communication so everyone involved understands their roles & responsibilities properly