Definition of business risk

In all businesses there are a series of business risks that generate uncertainty when trying to grow or try to propose solutions to the different problems that arise on a day-to-day basis. Each of the decisions that are made in a company, regardless of their importance, poses a risk to the company. In addition, not only are there risks in our decisions, but there are risks for companies that come from the environment in which they live, which they cannot control, but which they can try to minimize.

We must differentiate business risks from financial risks. While the financial risks They are based on being able to pay the debts that the company owns and increase generate profits, business risks are centered on the uncertainty created by all the business operations carried out by the company.

If the actions taken by companies were risk-free and always safe, there would be no place for competition and business improvement. However, this does not happen and we see that companies that take great risks in some actions can have a very positive impact or negatively affect them. This is the essence of business management, so we must make very consensual decisions and elaborate risk maps that allow us to know the extent of the impact that the threats that surround us may have.

Some examples of business risk can be economic and financial crises, cost control of our company, catastrophes or environmental issues, competition or the reputation of the company.

Know all the information about the Risk management in companies to evaluate and minimize the impact on organizations.

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