Hello Friends

1) Internal Risks are those risks which arise from the events taking place within the business enterprise.
The various internal factors giving rise to such risks are:-
o Human factors:- They may result from strikes and lock-outs by trade unions; negligence and dishonesty of an employee; accidents or deaths in the industry;incompetence of the manager or other important people in the organisation,etc.
o Technological factors:- They may result in technological obsolescence and other business risks.
o Physical factors:- They include the failure of machinery and equipment used in business;fire or theft in the industry; damages in transit of goods, etc.

2) External risks are those risks which arise due to the events occurring outside the business organisation. Such events are generally beyond the control of an entrepreneur.
The various external factors which may give rise to such risks are :-
o Economic factors:- They result from the changes in the prevailing market conditions.They may be in the form of changes in demand for the product, price fluctuations, changes in tastes and preferences of the consumers and changes in income, output or trade cycles.
o Natural factors:- are the unforeseen natural calamities over which an entrepreneur has very little or no control.They result from events like earthquake, flood, famine, cyclone, lightening, tornado,etc.
o Political factors:- have an important influence on the functioning of a business, both in the long and short term.

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Hi

* strategic, for example a competitor coming on to the market
* compliance, for example responding to the introduction of new health and safety legislation
* financial, for example non-payment by a customer or increased interest charges on a business loan
* operational, for example the breakdown or theft of key equipment

These categories are not rigid and some parts of your business may fall into more than one category. The risks attached to data protection, for example, could be considered when reviewing both your operations and your business' compliance.

Thanks

The types of risk your business faces

The main categories of risk to consider are:

* strategic, for example a competitor coming on to the market
* compliance, for example responding to the introduction of new health and safety legislation
* financial, for example non-payment by a customer or increased interest charges on a business loan
* operational, for example the breakdown or theft of key equipment

These categories are not rigid and some parts of your business may fall into more than one category. The risks attached to data protection, for example, could be considered when reviewing both your operations and your business' compliance.