This document discusses business risks and how to cope with them. It begins by outlining the objectives of understanding the concept of risk, both generically and in relation to business. It then defines risk and business risk. Business risk refers to the possibility of inadequate profits or losses due to uncertainties such as changes in consumer tastes, increased competition, or changes in government policy. The document identifies analyzing business risk as key, and provides a case study on beating the odds when launching a new venture. It notes that success comes to those who quickly identify and systematically eliminate risks in the right order using appropriate resources and methods.

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MODULE 6: BUSINESS RISKS AND HOW TO COPE
WITH THEM
By
Mr. Ebbah Friday Oghenero

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BUSINESS RISK & HOW TO COPE WITH THEM
LEARNING BY THE CASE METHOD
Aside from being the most relevant and practical way to learn managerial skills,
learning by case method is fun.
It calls for discussion of real-life situations faced by business executives in related
cases.
It helps sharpen your analytical skills, since you are required to produce
quantitative & qualitative evidence to support your recommendations
It spreads across a range of organizations & situations
Participants bring to bear their expertise, experience, observations & analyses.
OBJECTIVES
 Understanding the concept of risk, both generically and in relations to
business
 Application of effective methods, in dealing with business Risk
CONTENT
UNDERSTANDING BUSINESS RISK
1. Definition of ‘RISK’ and ‘BUSINESS RISK’
2. Identifying and Analyzing Business Risk
DEALING WITH BUSINESS RISK
UNDERSTANDING BUSINESS RISK

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‘RISK’
chance of something going wrong: the danger that injury, damage, or loss will
occur.
possibility of investment loss: the possibility of loss in an investment or speculation
Microsoft® Encarta® 2009. © 1993-2008 Microsoft Corporation. All rights
reserved.
BUSINESS RISK
From Wikipedia, the free encyclopedia
The term business risk refers to the possibility of inadequate profits or even losses
due to uncertainties e.g., changes in tastes, preferences of consumers, strikes,
increased competition, change in government policy, obsolescence etc. Every
business organization contains various risk elements while doing the
business. Business risks implies uncertainty in profits or danger of loss and the
events that could pose a risk due to some unforeseen events in future, which
causes business to fail.
IDENTIFYING & ANALYZING BUSINESS RISK
CASE STUDY: Beating the Odds When You Launch a New Venture
Clark Gilbert
Matthew Eyring
A version of this article appeared in the May 2010 issue of Harvard Business Review.
Success comes to those who quickly identify and systematically eliminate risks in
the right order, using the right level of resources and the right methods.
INTERACTIVE SECTION
DEALING WITH BUSINESS RISK

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