University of Tunis Tunis Business School

English Project Work

RISK IN BUSINESS
ONLY THOSE WHO WILL RISK GOING TOO FAR CAN POSSIBLY FIND OUT HOW FAR ONE CAN GO. THOMAS S. ELIOT

Elaborated by: Amina Daly Emna Mlika Jihen Chouat

CONTENT
Introduction
Definition of Risk Risk level Types of Risk Example of risk taker

INTRODUCTION
Risk is part of every human endeavor. From the moment we get up in the morning, drive or take public transportation to get to school or to work until we get back into our beds (and perhaps even afterwards), we are exposed to risks of different degrees. In common situations, we are exposed to unpredictable risk; in other cases we seek risk voluntarily (climbing mountains, bungee jumping, gambling). Major advance in human civilization, from the cavemans invention of tools to gene therapy, has been made possible because someone was willing to take a risk and challenge the existing rules.

GLAMBING

DEFINITION
A probability or threat of a damage, injury, liability, loss, or other negative occurrence that is caused by external or internal vulnerabilities, and that may be neutralized through preemptive action.

RISK IN BUSINESS
The chance that an investment's actual return will be different than expected. Risk includes the possibility of losing some or all of the original investment Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, overall economic climate and government Regulations.

RISK LEVEL

Systematic risk

Unsystematic risk

RISK LEVEL

Unsystematic risk

Systematic risk

RISK LEVEL

Systematic risk

Unsystematic risk

TYPES OF RISKS
In the economic world we can distinguish several types of risk depending on the field or the situation where it occurs: Business Risk : is the uncertainty of the companys income. The possibility that a company will have lower than anticipated profits, or that it will experience a loss rather than a profit. Liquidity Risk : The uncertainty introduced by the secondary market for a company to meet its future short-term financial obligations.

TYPES OF RISKS

Financial Risk : is the probability that an investment's actual return will be different than expected. In other terms, its additional risk a shareholder bears when a company uses debt.

Exchange Rate Risk : it occurs when investors acquire foreign investments and wish to convert them back to their home currency.

TYPES OF RISKS

Market Risk : the price volatility increases and decreases in the day-to-day market. This causes an investor to experience losses from fluctuations in securities prices.

Country Risk : it is political risk, the risk of investing funds in another country whereby a major change in the political or economic environment could occur.

EXAMPLE

Christopher Columbus

RISK IN BUSINESS

Thanks for your attention!