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Business is full of operational and financial risk. which also includes
1. Country risk - Dealing with those high risk countries, where there is no or fragile political stability, poor law and order situation. The country risk is higher when dealing with those customers / Banks incorporated with those countries.
2. Currency Risk It involves in fluctuation of exchange rate risk. Higher the volatility, higher the risk.
3. Price Risk - There are several products which are highly price sensitive such as Gold, Silver and precious metals. Business is to factor the price risk when dealing with highly price sensitive products.
4. Cash flow risk - This is also called liquidity risk, business has to ensure that the company have enough liquid cash / investment at their disposal to manage the cash flow adequately.
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