Business Risk

Business Risk refers to the potential for loss or negative impact on a company's operations and profitability due to various internal and external factors. This can include market competition, changes in consumer preferences, operational inefficiencies, supply chain disruptions, economic downturns, and regulatory changes. Business risk can affect a company's ability to achieve its objectives and maintain its market position. Effective management involves strategic planning, market analysis, diversifying revenue streams, and implementing robust operational controls to mitigate potential risks and adapt to changing business environments.

Basel scope:

Pillar 2

Capital requirements:

Mitigated by Capital