Identify two common sources of risk in business environments.

1. Economic risk: Economic risk refers to the potential for financial loss or instability due to changes in the economy, such as fluctuations in interest rates, inflation, exchange rates, or market conditions. Businesses may face economic risk when making investments, expanding operations, or entering new markets, as these decisions can be impacted by external economic factors beyond their control.

2. Operational risk: Operational risk arises from the day-to-day activities and processes within a business, including human error, system failures, supply chain disruptions, regulatory compliance issues, and natural disasters. These risks can lead to financial losses, reputational damage, and legal liabilities if not properly managed. Businesses must identify and mitigate operational risks to ensure smooth operations and protect their assets and stakeholders.

1. Financial risk: This includes the risk of losing money due to factors such as changes in currency exchange rates, stock market fluctuations, or interest rate changes.
2. Operational risk: This includes the risk of losing money due to factors such as equipment failure, human error, or natural disasters.