Title: Assess types of business risk.
Course: Entrepreneurship, Advanced (12053-II) > Section: Preparing for Life as an Entrepreneur

Assessment should include analyzing all aspects of business that expose it to factors that could reduce profits or cause it to fail. Types of risk include

- strategic risk
- compliance risk (i.e., regulatory)
- operational risk
- reputational risk.

Process/Skill Questions:

- What risks are faced by business owners?
- How do business risks affect profits?
- How do business risk factors affect business decisions?
- How can companies protect themselves from business risks?
- What are examples of internal risks? External risks?
- How can financial risk be minimized?
- Why is it important to identify the risks of the business and include them in the business plan?
- What are some compliance risks associated with running an international business?

Teacher Resources:

- What is Business Risk? Definition, Factors, and Examples, Investopedia