Risk and Uncertainty Explained

What is a Risk?

  • The possibility that events will not occur as planned/hoped- i.e., go wrong

What is uncertainty?

  • The unpredictable and uncontrollable events that affect business decisions and actions

Examples of Risk in Business:

  • Cyber-security and Fraud

  • Environmental damage

  • Supply Chain Shocks

  • Changing Regulation and Legislation

  • Economic Change

Examples of Uncertainty in Business:

  • How will the market respond to changes in the marketing mix? E.g. Price increase

  • Will a new business achieve its break-even output?

  • Will suppliers prove reliable if used for the first time?

  • How many employees will leave this year?