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    Risk Entrep

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    Jonnabel Sulasco
    The document discusses 5 types of business risks from a business leader's perspective: 1) Financial risk involving debt financing and cash flow variability 2) Compliance risk regarding failure to comply with legal requirements 3) Cybersecurity risk of data breaches or reliance on digital connections 4) Operational risk of failures in processes, people, systems or external events 5) Reputational risk of failing to meet stakeholder expectations It notes that all of these risks tend to recur over the business cycle as long as a business operates. To achieve financial goals, entrepreneurs must balance their desires with the risks they are willing to take given their passion for their business ideas.

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    Risk Entrep

    Uploaded by

    Jonnabel Sulasco
    24 views1 page
    The document discusses 5 types of business risks from a business leader's perspective: 1) Financial risk involving debt financing and cash flow variability 2) Compliance risk regarding failure to comply with legal requirements 3) Cybersecurity risk of data breaches or reliance on digital connections 4) Operational risk of failures in processes, people, systems or external events 5) Reputational risk of failing to meet stakeholder expectations It notes that all of these risks tend to recur over the business cycle as long as a business operates. To achieve financial goals, entrepreneurs must balance their desires with the risks they are willing to take given their passion for their business ideas.

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    RiskEntrep

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    The document discusses 5 types of business risks from a business leader's perspective: 1) Financial risk involving debt financing and cash flow variability 2) Compliance risk regarding failure to comply with legal requirements 3) Cybersecurity risk of data breaches or reliance on digital connections 4) Operational risk of failures in processes, people, systems or external events 5) Reputational risk of failing to meet stakeholder expectations It notes that all of these risks tend to recur over the business cycle as long as a business operates. To achieve financial goals, entrepreneurs must balance their desires with the risks they are willing to take given their passion for their business ideas.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    24 views1 page

    Risk Entrep

    Uploaded by

    Jonnabel Sulasco
    The document discusses 5 types of business risks from a business leader's perspective: 1) Financial risk involving debt financing and cash flow variability 2) Compliance risk regarding failure to comply with legal requirements 3) Cybersecurity risk of data breaches or reliance on digital connections 4) Operational risk of failures in processes, people, systems or external events 5) Reputational risk of failing to meet stakeholder expectations It notes that all of these risks tend to recur over the business cycle as long as a business operates. To achieve financial goals, entrepreneurs must balance their desires with the risks they are willing to take given their passion for their business ideas.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Jonnabel T. Sulasco Feb.

    10, 2023
    BSIA 3-A

    Discuss each type of business risks based on business leaders' perspective.


    1. Financial risk - is the increased variability of equity owners' net cash flows as a
    result of the fixed financial obligations that come with debt financing and cash
    leasing. The risk of cash insufficiency is included in financial risk.

    2. Compliance risk - refers to the probability of losses incurred as a result of the


    organization and its workers failing to comply with the requirements of legislation,
    and legal acts of the authorized body. This might result in the financial institution
    losing its reputation, restricting development options and expansion for the
    business, fulfilling the terms of contracts / contracts, and even the business being
    liquidated.

    3. Cybersecurity Risk - involves the risk of a network data breach as well as the risk
    of the entire firm being undermined by commercial activities that rely on open
    digital connection and accessibility. Specific cyber risks include ransomware,
    phishing, malware, third-party risks, internal risks, compliance failures, and other
    cyber hazards.

    4. Operational risk - the business risk of loss caused by insufficient or failed internal
    processes, people, systems, or external events. Examples of operational hazards
    include fraud, accounting errors, equipment failure or theft, mis-selling, product
    faults, and lawsuits for unfair dismissal.

    5. Reputational Risk - The damage that might occur to a business when it fails to
    satisfy the expectations of its stakeholders and is consequently negatively
    perceived. It is a threat or hazard to a business's or entity's good name or status,
    and it can harm any business, regardless of size or industry.

    Do you believe that any of these risks tends to repeat during the business cycle?
    Explain.
     All of the risks discussed above has the tendency to occur again. As long as the
    business still operates, it will have the chance to face all of these risks. You
    cannot eliminate these risks totally, what you can do is to be familiar with these
    risks so that you will have an idea on how to mitigate them.

    To achieve financial goals, entrepreneurs must reconcile what they want with
    what they are willing to risk. Comment on this.
     An entrepreneur is an individual who creates and grows a business through their
    creative ideas. Although they need money to start business, it is not the primary
    motivation for them. Most of the time, they are the one who take huge risks when
    starting a business because of their passion. So, I think entrepreneurs will
    reconcile what they want with what they are willing to risk in order to see their
    dream business take off.

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