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Introduction
In terms of business economics, ‘risk’ refers to the assumption of an organization attaining profits that are below expected or forecasted levels. It could also refer to the possibility of a loss. There are several aspects that influence business risk. Some of these factors are unit price, volume sales, cost of production, and economic and political environment . Organizations that aim to lower risk in order to attain stability often maintain low debts. This enables the company to assure that its financial liabilities are always payable.
Maintaining low financial risk levels has become an imperative in ...