BALUBAR, KRYSTAL SHANE B.

What are the common types of risks faced by businesses? Enumerate and briefly
explain each.
1. Economic Risk
It's necessary to keep an eye on changes and patterns in order to recognize and
prepare for an economic downturn because the economy is constantly changing
as the markets fluctuate.

2. Financial Risk
Making changes on business plan will prevent damaging your cash flow or
incurring a loss suddenly.
This business risk could be related to credit granted to consumers or even the
debt load of your own organization. As well as interest rate fluctuations can also
be a threat.

3. Operational Risk
Internally, externally, or as a result of a combination of circumstances, this
business risk might occur. Something unexpected could occur, end up losing
overall company continuity. It’s very important to provide a means to consider
what might go wrong and create a backup system or proactive actions to ensure
that activities are not disrupted.

4. Competition Risk or Comfort Risk

Risk management is a company's continuous evaluation of its performance, plan
refinement, and the maintenance of strong, interactive relationships with its
audience and consumers. It's crucial to keep an eye on the competition by
investigating how they use online and social media channels on a frequent basis.
Some firms face the risk of a company leader being so captivated with their
success and current state of affairs that they fail to search for methods to pivot or
improve.

5. Security and Fraud Risk

There are increasing potential for hacking as more customers utilize internet and
mobile channels to transmit personal data.
Not only does this risk threaten a company's trust and reputation, but it also
exposes it to financial liability in the event of a data breach or fraud. Focus on
security solutions, fraud detection tools, and staff and customer education on
how to spot any possible concerns to accomplish effective enterprise risk
management.