Business risks refer to the possibility of inadequate profits or losses due to uncertainties or unexpected events. There are two types of business risks - speculative risks which involve the possibility of gains or losses, and pure risks which only involve the possibility of loss. The nature of business risks is that they arise from uncertainties and are an essential part of every business, with the degree of risk depending on the nature and size of the business. Profit is the reward for risk-taking. Business risks can be caused by natural causes, human causes, economic causes, and other unforeseen events. Businesses can deal with risks by avoiding risky transactions, preventive measures, insurance, internal provisions, and risk-sharing with other enterprises.