Describe the different types of risks involved in business transactions.

Business risk is the exposure a company or organization has to face some factors that will lower its profits or lead it to fail. Types of risk associated with business transactions are:

A) Strategic risk : Everyone knows that a successful business needs a comprehensive, well-thought-out business plan. But it’s also a fact of life that things change, and your best-laid plans can sometimes come to look very outdated, very quickly.

B) Compliance risk : Risk is associated with complying with all the necessary laws and regulations that apply to the business organization.