1-1vic 1

Respnd to below in 150 words

 Market Risks

1. The typical risks faced by a firm include both internal and external factors. Some of the internal factors would include things such as a technology gap or an outdated market strategy. Other internal risks could include employee strike or loss of talent. These internal risks are risks that the business has at least some degree of control over. The external risks seem to be more apparent for most companies such as a rise in interest rates, increased competition, changing laws and regulations, reputational risk, and financial risk – such as not being paid by an accounts receivable or losing money due to operational errors or other reasons. A business could worry about a price war which cuts into their profit margins or a supply depletion where suppliers are charging a premium for their goods. In both of these cases, businesses would stand to lose money that they otherwise expected to be profit.