Podcast
Questions and Answers
The ______ risks are associated with the entrepreneur’s ability to convert the strategy chosen into specific plans.
The ______ risks are associated with the entrepreneur’s ability to convert the strategy chosen into specific plans.
operational
The ______ risks are derived from the need to undertake heavy investment in order to ensure the feasibility of his or her business project.
The ______ risks are derived from the need to undertake heavy investment in order to ensure the feasibility of his or her business project.
technology
The size, the financial and operational capacity of the agents in a sector determine the degree of ______ in that sector.
The size, the financial and operational capacity of the agents in a sector determine the degree of ______ in that sector.
rivalry
The role played by the ______ in the sector could generate risks for an entrepreneur.
The role played by the ______ in the sector could generate risks for an entrepreneur.
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A ______ risk that external factors independent from the entrepreneur’s management could directly or indirectly influence the achievement of his or her objectives and strategies.
A ______ risk that external factors independent from the entrepreneur’s management could directly or indirectly influence the achievement of his or her objectives and strategies.
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The ______ risks involve the appearance of new competitors, intense competition, and specialized competition.
The ______ risks involve the appearance of new competitors, intense competition, and specialized competition.
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Examples of ______ risks include strong exposure to regulatory changes, business fragmentation, and appearance of new markets.
Examples of ______ risks include strong exposure to regulatory changes, business fragmentation, and appearance of new markets.
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The ______ risks involve the need for making an advertising effort, high staffing costs, and lack of operational and financial planning.
The ______ risks involve the need for making an advertising effort, high staffing costs, and lack of operational and financial planning.
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Exposure to changes in the price of goods is an example of ______ risk.
Exposure to changes in the price of goods is an example of ______ risk.
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The customer can be a crucial focal point of ______ for an entrepreneur.
The customer can be a crucial focal point of ______ for an entrepreneur.
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The ______ risks refer to the uncertainty associated with effective management and the control of finances.
The ______ risks refer to the uncertainty associated with effective management and the control of finances.
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Long-term ______ incapacity is an example of financial risk.
Long-term ______ incapacity is an example of financial risk.
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Dispersion in the ______ is an example of supply risk.
Dispersion in the ______ is an example of supply risk.
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Increase in power of ______ is an example of customers risk.
Increase in power of ______ is an example of customers risk.
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Study Notes
Classification of Risks
Sector Risks
- External factors can influence the achievement of objectives and strategies to a significant extent
- Examples: Strong exposure to regulatory changes, business fragmentation, and appearance of new markets
Operational Risks
- Associated with the ability to convert strategy into specific plans with effective allocation of resources
- Examples: Need for advertising effort, high staffing costs, lack of operational and financial planning, and tendency towards subcontracting or concentration
Technology Risks
- Exposure to technological risks due to need for heavy investment or employee training
- Examples: Significant investments, low level of implementation, and low level of technological training
Competitors Risks
- Size, financial and operational capacity of competitors determines degree of rivalry in a sector
- Examples: Appearance of new competitors, intense competition, and specialized competition
Suppliers Risks
- Variations in price of raw materials, availability of supply, and concentration of suppliers can generate risks
- Examples: Exposure to changes in price of goods, dispersion in supply, non-determination of quality of service, and increase in power of negotiation
Customers Risks
- Changes in customer tastes and needs can generate risks for an entrepreneur
- Examples: Increase in power of negotiation, lack of loyalty, social and demographic changes, seasonality, and decline in demand
Financial Risks
- Uncertainty associated with effective management and control of finances
- Examples: Long-term financial incapacity, exposure to exchange rates, movements in interest rates, and others
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Description
This quiz covers the classification of risks in entrepreneurship, including sector and operational risks, and how they impact business objectives and strategies. Learn how to identify and manage different types of risks.
