The Importance Of Social Risks In A Business

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There are many different things to consider when running managing a business. There are risks that come with the business despite the type of business. These risks vary in types based on a number of different factors. Not managing these risks could run the possibility of business failure. There are almost an endless amount of possible risks. With this abundance of risks, it is sometimes difficult to manage them.
All of the risks that a business could possibly run into fall under two categories that are social risks and financial risks. Managing these two types of risks are very crucial in the survival of a business. If a business does not manage these risks, they will only pile up on each other never going away. No business wants this because as the risks accumulate they become harder to manage properly or without other risks occurring. Many for profit institutions have methods to manage risks and costs (Allen 1). Social risk are the first type of risk that can have an effect on a business. Social risks are all of the risks that come with the person that a business hires. Social risks are not dependent on the position the person is. A CEO of a company can still pose a social risk.
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The large scale and impact of adverse events, has resulted in increased density of global networks of people, organizations, and countries. Physical risks such as a fire or explosion provide the most types of risks to a building where business is conducted. Without a building business cannot be conducted. Depending on where a business is located there can be a location risk. These are fires, floods, tornadoes, strong storms, and earthquakes (Vegt 972). These can be detrimental to a business. Alcoholism and drug use are human risks that will hurt a business in different ways depending on whom the person is to the business whether it be an employee, manager, or owner. These risks may cause an increase in project

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