MANTALONGON NATIONAL HIGH SCHOOL

Mantalongon, Dalaguete, Cebu

Names: Cariquitan, Michaela 12- St. Alphonsus Enricoso, Jaymar 12- St. Anthony
Cejudo, Marieta 12- St. Alphonsus Mercado, Isabelle 12- St. Anthony
Activity No.:______ Title:______________________________________________________Date:__________

BUSINESS RISKS REPORT

a. Definition and Examples
Risk is defined as “a situation involving exposure to danger” (Oxford Dictionary). In business, it is the
exposure of a company or organization to factors that could lower its profits or lead it to fail. It refers to the
possibility of a commercial business making inadequate profits due to uncertainties. Its examples include
changes in taste, changes in the preferences of consumers, increased competition, changes in government
policies, and obsolescence.
b. Types of Business Risks
1. Strategic Risks
A technology company has invested heavily in developing a new product line, but a competitor
releases a superior product, rendering the company's offering obsolete and causing a significant loss
of market share.
2. Compliance Risks
A healthcare company fails to comply with new data privacy regulations, resulting in a data breach
that exposes sensitive patient information. This could lead to hefty fines, legal liabilities, and
damage to the company's reputation.
3. Environmental Risks
A manufacturing company's operations contribute to environmental pollution, leading to regulatory
fines, legal actions, and negative public perception, impacting its ability to operate in certain regions
or attract customers.
4. Operational Risks
A manufacturing company relies on a single supplier for a critical component. An unexpected
disruption in the supplier's operations due to a natural disaster or labor strike could halt the
company's production line and lead to significant losses.
5. Financial Risks
A company has taken out a large loan to expand its operations, but due to an economic downturn, its
sales have declined significantly, making it challenging to repay the loan and cover operating
expenses.
c. Steps in Mitigating Risks in Business
1. Identify all potential risks through comprehensive assessments and analyses.
2. Evaluate the likelihood and impact of identified risks to prioritize them.
3. Develop appropriate strategies to avoid, mitigate, transfer, or accept risks.
4. Continuously monitor and report on risks using established indicators and regular reviews.
5. Effectively communicate and train employees on risk management policies, procedures, and
responsibilities.
6. Integrate risk management considerations into all business aspects, including planning, decision-
making, and operations.
7. Regularly review and improve risk management strategies, policies, and processes for ongoing
effectiveness.