Question

Match the given situations to the risks faced by the business. economic risks, natural disasters, right product, operations risk, due to inefficiency of management, the business plan has failed, the finance team has misjudged the requirement of the business plan and chosen a wrong line of credit, flash floods have damaged all machinery in the main manufacturing unit, and there have been foreign exchange rate fluctuations.

Answer 1

Answer:

Economic risks - there have been foreign exchange rate fluctuations.

Foreign exchange rate fluctuations are an economic risk, and they can represent a significant risk for many companies, for example, for companies that import or export goods.

Natural disasters - flash floods have damaged all machinery in the main manufacturing unit

Flash floods occur when a lot of rain falls in a very short period of time. They are a type of natural disaster.

Right product risk - the finance team has misjudged the requirement of the business plan and chosen a wrong line of credit

In this case, the company experienced the risk of choosing the right product or not, with the adverse effect that it did not choose it.

Operations risk - the business plan has failed

The goal of a business operation is to carry out the business plan, if the daily operations of the business fail to fulfill the business plan, then, the company has incurred in operations risk.