Business Risk
Definition:
Business risk is the possibility that an organization will be unable to achieve its strategic objectives or sustain profitability due to factors such as market changes, competitive actions, regulatory shifts, economic conditions, or fundamental operational failures. These risks affect the enterprise as a whole and can be ongoing and long‑term.
Example:
A new competitor introduces a lower‑cost, higher‑quality product that captures a significant share of the market, causing the company’s revenues to fall and forcing the organization to rethink its business model or pricing strategy.
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