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What kinds of risks do I normally face?

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As noted in the previous answer, some risks that your business faces are obvious while others are simply an accepted part of the corporate environment and are rarely thought of as risk. When thinking of risk as any potential for loss, however, there are many different kinds of corporate risk:
Human Risk: Human risk itself can be sub-divided into physical risk and job risk. What safety risks face your employees on a daily basis (think broadly)?

As for job risks, what risks does your company take that endanger the security or specifics of an employee's job?

Financial Risk: This category refers to risks such as the financial results of risky business ventures, as well as risk related to the economy (e.g. the shifts in the stock market or federal interest rates).

Reputation Risk: Perceived corruption, poor treatment of employees, and corporate greed can all negatively affect a company's reputation. On the other hand, donations to local organizations or consistently strong customer service can give a company a very positive reputation.

Operational Risk: Think of your day-to-day business--what would cause your company the most problems on a standard day? Practices such as poor inventory management or employee distribution disrupt your operations and endanger your daily business success.

Natural Risk: Natural risk involves a company's dependence on the presence or absence of natural conditions--such as rain, temperatures, or natural disasters.

Technical Risk: How would your company be impacted by technical failure? Should your company invest in new technology at all?

You may be facing one of these risks or all of them, but your company is facing risk on a daily basis. Some types of risk, such as natural risk, are often present when you don't even realize it, while other forms of risk come to you in the form of choices.

Next Page: How do I evaluate a risk?

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