2. NAME : SUKANYA P
REG: NO : 13892013
COMMERCE
KUCTE
KULAKKADA

3. BUSINESS RISK
Business risk refers to the
possibility of loss which are
beyond the control of business
man. These are the unforeseen
events which have adverse effects
on business.

5. There are mainly five causes to
business risk
1.Natural causes:
These risks occur naturally.
Certain unforeseen events like
heavy rain, famine, earthquake,
fire, drought, etc.

6. 2. Human causes
Unexpected events like
theft, strike, lockout,
negligence and carelessness etc
are the instances of human
causes.

7. 3. Economic causes
Unpredictable nature of
economy like changes in
demand and price, market
conditions, competition, interest
rates etc come under economic
causes

8. 4. Political causes
Changes in government
policies regarding export import
trade, taxation, ie, introduction of
VAT, licensing policy etc are
instances of political causes.
Political ideaology also affects
business.

9. 5. Managerial causes
Poor planning, absence of
research and development
activities, mismanagement, etc
are instances of managerial causes
of risk.

10. All these risks affects
business in one way or other.
These are the unfavorable
situation which are beyond the
control of business.