Causes for Business Risk
Business risk cover a lot of factor
and it arise due to lot of causes. Here we mention some important causes for
business risk: -
 |
| Causes for Business Risk |
Human
factor: - This
factor has an important role in business risk. A single carelessness mistake by
any individual may lead a big accident and involve loss of life and property. We
include in it like – relationship between different levels, estimating of
manpower and demand of product.
Capital
goods: -
Mechanical defects also have causes of risk. A explosion in any machine may
cause for death of man power and a loses of raw materials. Lack of proper
machine care may result of accident in production line.
Economic
factor: - In it, we
include change in demand of product and pricing war in between the market due
to competition. We also include change in technology or economic working
conditions.
Natural
and miscellaneous factor:
- Nobody can the natural factor like rain, flood, drought, snowfall and earthquake
etc. Nobody can make for-caste for these areas. Some changes in the government policy
like tax or licensing etc come under the miscellaneous factors.
