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Causes of Business Risk (Human Causes (e.g. (employees leak (business…
Causes of Business Risk
Physical Causes
All ca
uses
re
sult in dam
age
as
sets consi
dered
as
physical cau
se
for example,
cha
nge technol
ogy
re
sult mach
inery
bei
ng outd
ated,
us
e
o
f o
ld te
chnol
ogy,
mech
anical def
ects
res
ult in dam
age
as
se
ts
bur
st
ing o
f bo
iler,
accid
en
t to
emp
loyee e
tc.
Nature Causes
ind
epe
nd
ent phe
nome
no
n
& h
uma
n be
ings
co
ntro
l ov
er
it.
calamities like
fo
od
drou
gh
t
eart
hqua
ke
fami
ne e
tc.
Affe
ct bus
ines
s
a
lo
t
res
ult in
he
avy lo
sses.
Human Causes
rel
ated t
o
cha
nce of l
oss
to hum
an bei
ng
o
r empl
oye
e
s
o
f Orga
nisa
tion.
disho
nesty emplo
yees
b
ri
ng
he
avy loss
es
Fo
r bus
iness.
e.g.
empl
oyees le
ak
busine
ss sec
ret
to co
mpetitor
& co
mmit fr
aud
brin
g heavy lo
sses
by wa
sta
ge
of
r
eso
ur
ces.
empl
oyee
s ha
m
per
produ
ction b
y
goin
g on stri
kes,
rio
ts e
tc.
Economic Causes
Econ
omic Cau
ses
chanc
e o
f los
s
cha
nge i
n
ma
rke
t.
ca
n b
e
cha
ng
e
i
n degr
ee
of co
mpe
tition.
Gov
e
rnm
ent po
licy
affe
cts busin
ess
a
lo
t.
example
1971
when
Jan
ata gover
nment
ca
me pow
er
Coca-Cola Company
& other foreign
com
pani
es
se
nt ba
ck
to
India
.