Question

Every time a company hires a new employee and trains them to take on the new role, what kind of risk are they

Answer 1

The risk a company takes every time a company hires a new employee and trains them to take on the new role is known as financial risk.

What is a risk?

Risk can be defined as a possibility or a situation which is uncertain and involves exposure to danger. A risk from an investment perspective is the possibility of incurring losses due to market uncertainties.

When a company hire new employee, the company would expend some cost towards training of the newly recruited employee; which is termed financial risk.

Hence, the risk a company takes every time a company hires a new employee and trains them to take on the new role is known as financial risk.

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