Factors that instigate financial risk in a business

cherry123

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• Mar 20, 2023

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Some financial risks in a business are being influenced by some factors that are beyond your control but it is good to know about them to deal with them as much as we can. They include:

irrecoverable bad debt from customers

unprofitable market where money is lost in the process

A sudden loss of operational funds.

High theft or embezzlement of funds by the workers

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IB D

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• Mar 21, 2023

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When a business loses money, in a bid to receiver, they might end up taking huge financial risks. All risks though must be properly weighted.

 

astutimeliana723

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• Mar 21, 2023

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cherry123 said:

Some financial risks in a business are being influenced by some factors that are beyond your control but it is good to know about them to deal with them as much as we can. They include:

irrecoverable bad debt from customers

unprofitable market where money is lost in the process

A sudden loss of operational funds.

High theft or embezzlement of funds by the workers

Add yours

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It's true I totally agree with you. Receivables that cannot be collected due to irresponsible customers often trigger the bankruptcy of a business. Things like this happen a lot in my country. So it is necessary to anticipate incidents like this, as much as possible not giving receivables to customers, or providing receivables with a small limit.

 

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• Mar 21, 2023

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As much as possible, a business should not be giving out their goods on debts. It is not good for the health of the business. I know some business people are desperate to sell.

 

nomad

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• Mar 21, 2023

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A lot of people make one simple mistake, they spend all their funds on product development without realizing that they also need money, sometimes even more money, for marketing their products.

 

eldavis

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• Mar 25, 2023

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Workers not willing to do their work is also another factor. Once the workers are not willing to work, this would cause a decline in production and customers would want to go to other places at this stage.