Business Risks

Risk is anything that could prevent the achievement of a corporate objective.It is very important to determine all the organization's stakeholders otherwise key risks may not be recognized.There are various types of business risks:
1.Strategic risks-this risks impedes the achievements of corporate mandate and objectives such as organizational policy and strategy;political environment;economic environment;legal &regulatory framework;competitive trends;financial environment(credit,liquidity,exchange rate &interest rate fluctuations); infrastructure;changing demographics etc
2.Operating risks-this risk impedes achievement of operating results including organizational structure &reporting relationships;budgeting & resource allocation;financial  management;cash &cash flow management,revenues,debtors,expenditures,creditors,inventories,fixed assets etc
3.Financial risks-this risk impede the accuracy,reliability and timeliness of financial information/reporting.
4-Compliance risk-this is a risk that could cause embarrassment to company;risks that cause liabilities for not complying with law&regulations;compliance with internal policies &procedures;compliance with statutory reporting guidelines,example companies act,GAAP,IFRS,Agreement &contractual relationships as well as health safety &environmental issues.