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TYPES OF RISKS FACING BUSINESSES AND INDIVIDUALS
Business risk management is basically concerned with possible reductions of business value
from any source.
Major business risks that give rise to variation in cash flows and business value are price risk,
credit risk and pure risk.
PRICE RISK
CREDIT RISK
PURE RISK
Input price risk
Output price
risk
Legal liability
Damage to assets
Worker injury
Employee benefits
Commodity price risk
Interest rate risk
Exchange rate risk
Lenders
BUSINESS RISKS
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MEDICAL
EXPENSES
PHYSICAL
ASSETS
LONGEVITY
RISK
Death
Motor
Bonds
Stocks
Disability
Aging
Unemployment
Home
Home
PERSONAL RISKS
EARNINGS
RISK
LIABILITY
RISK
FINANCIAL
ASSETS
Motor
Others

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