![]() ![]() While strategic risk is pretty challenging to solve, operational risk Operational Risk Operational risk is the business uncertainty a company comes across in the industry while executing its everyday business operations. As a result, the business won’t be able to sell the products and make money. For example, if a business process fails or machinery stops working, the business won’t be able to produce any goods/products. But it has nothing to do with external circumstances instead, it’s all about internal failures. Operational risk is the second necessary type of business risk. ![]() ![]() If a new product doesn’t sell well, there’s always a more significant business risk of running out of business. The business needs to know which customer segment to aim at before introducing new products. The top management needs to understand that this is an issue of wrong targeting. For example, when a company introduces a new product to the market, the existing customers of the previous product may not accept it. And if the top management isn’t able to decide the right strategy, there’s always a chance to fall back. Strategy is a significant part of every business. Source: Business Risk () #1 – Strategic risk: You are free to use this image on your website, templates, etc, Please provide us with an attribution link How to Provide Attribution? Article Link to be Hyperlinked Since business risk can happen in multi-faceted ways, there are many business risks. ![]()
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