Business risk - Revision history

imported>Doug Williamson: Layout.

2016-06-14T12:12:53Z

Layout.

← Older revision		Revision as of 12:12, 14 June 2016
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	In its broadest sense, business risk means the set of risks taken by a business in choosing to operate in a commercially competitive environment, launching a new product or investing in new equipment.		In its broadest sense, business risk means the set of risks taken by a business in choosing to operate in a commercially competitive environment, launching a new product or investing in new equipment.

	These decisions are risky and they may or may not result in the expected reward. In extreme cases this risk may even result in the failure of the wider business. Many firms attempt to limit the scale of this risk by restricting the range of their business activities to their core competences.		These decisions are risky and they may or may not result in the expected reward.

			In extreme cases this risk may even result in the failure of the wider business.

			Many firms attempt to limit the scale of this risk by restricting the range of their business activities to their core competences.

imported>Doug Williamson: Add link.

2016-06-14T12:10:24Z

Add link.

← Older revision		Revision as of 12:10, 14 June 2016
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	* [[Capital asset pricing model]]		* [[Capital asset pricing model]]
	* [[Commercial risk]]		* [[Commercial risk]]
			* [[Enterprise risk management]]
	* [[Equity risk]]		* [[Equity risk]]
	* [[Financial risk]]		* [[Financial risk]]

imported>Doug Williamson: Added missing 'the' to first line and reworded 2nd paragraph, 2nd line to make more understandable.

2015-06-03T08:49:56Z

Added missing 'the' to first line and reworded 2nd paragraph, 2nd line to make more understandable.

← Older revision		Revision as of 08:49, 3 June 2015
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	In its broadest sense, business risk means set of risks taken by a business in choosing to operate in a commercially competitive environment, launching a new product or investing in new equipment.		In its broadest sense, business risk means the set of risks taken by a business in choosing to operate in a commercially competitive environment, launching a new product or investing in new equipment.

	These decisions are risky and they may or may not result in the expected reward~~, they~~ may even result ~~in extreme cases~~ in the failure of the wider business. Many firms attempt to limit the scale of this risk by restricting the range of their business activities to their core competences.		These decisions are risky and they may or may not result in the expected reward. In extreme cases this risk may even result in the failure of the wider business. Many firms attempt to limit the scale of this risk by restricting the range of their business activities to their core competences.

imported>Doug Williamson: Align with qualifications material.

2015-06-01T09:40:06Z

Align with qualifications material.

← Older revision		Revision as of 09:40, 1 June 2015
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	== Business risk ~~in the Capital Asset Pricing Model~~ ==		==== Business risk generally ====


	In ~~the capital asset pricing model (CAPM) this term is used to mean the ungeared beta of the~~ business~~. Because it is ungeared it represents the overall~~ risk ~~(beta)~~ of ~~the~~ business ~~with its element of financial risk removed~~.		In its broadest sense, business risk means set of risks taken by a business in choosing to operate in a commercially competitive environment, launching a new product or investing in new equipment.

	~~Risk~~ in ~~this CAPM context is defined narrowly to mean~~ the ~~correlation between movements~~ in the ~~company's share returns and~~ the ~~returns~~ to the ~~overall market~~.		These decisions are risky and they may or may not result in the expected reward, they may even result in extreme cases in the failure of the wider business. Many firms attempt to limit the scale of this risk by restricting the range of their business activities to their core competences.


			==== Business risk in the Capital Asset Pricing Model ====


	~~== Business~~ risk ~~more generally ==~~		In the capital asset pricing model (CAPM) 'business risk' means the component of total risk which arises from the business operations of a company which has issued shares or other securities.


	~~The term~~ is ~~also used more broadly to refer to~~ the ~~set~~ of ~~risks which may be taken by a~~ business ~~in seeking to operate in a normal competitive environment; launching a new product or investing in new equipment~~.		Business risk in the CAPM is measured by the ungeared beta of the business.

	~~These decisions are risky and they may or may not result in the expected reward, they may even result in extreme cases~~ in the ~~demise~~ of the ~~business. Many firms attempt to limit~~ the ~~scale~~ of ~~this risk by restricting~~ the ~~range of their business to their core competences~~.		Risk in this CAPM context is defined narrowly to mean the variability of the company's share returns compared with the returns of the market as a whole, as if the company had no debt.



	== Business risk for financial regulatory purposes ==		==== Business risk for financial regulatory purposes ====


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	* [[Risk taxonomy]]		* [[Risk taxonomy]]
	* [[Ungeared beta]]		* [[Ungeared beta]]

			__NOTOC__

	[[Category:Corporate_finance]]		[[Category:Corporate_finance]]
	[[Category:Compliance_and_audit]]		[[Category:Compliance_and_audit]]
	[[Category:Manage_risks]]		[[Category:Manage_risks]]

imported>Doug Williamson: Link with Risk taxonomy

2015-05-20T08:58:06Z

Link with Risk taxonomy

← Older revision		Revision as of 08:58, 20 May 2015
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	* [[Financial risk]]		* [[Financial risk]]
	* [[Operational risk]]		* [[Operational risk]]
			* [[Risk taxonomy]]
	* [[Ungeared beta]]		* [[Ungeared beta]]

imported>Doug Williamson: Link with Commercial risk page.

2015-04-11T18:04:23Z

Link with Commercial risk page.

← Older revision		Revision as of 18:04, 11 April 2015
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	The term is also used more broadly to refer to the set of risks taken by a business in seeking to operate in a normal competitive environment; launching a new product or investing in new equipment.		The term is also used more broadly to refer to the set of risks which may be taken by a business in seeking to operate in a normal competitive environment; launching a new product or investing in new equipment.

	These decisions are risky and they may or may not result in the expected reward, they may even result in extreme cases in the demise of the business. Many firms attempt to limit the scale of this risk by restricting the range of their business to their core competences.		These decisions are risky and they may or may not result in the expected reward, they may even result in extreme cases in the demise of the business. Many firms attempt to limit the scale of this risk by restricting the range of their business to their core competences.
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	* [[Beta]]		* [[Beta]]
	* [[Capital asset pricing model]]		* [[Capital asset pricing model]]
			* [[Commercial risk]]
	* [[Equity risk]]		* [[Equity risk]]
	* [[Financial risk]]		* [[Financial risk]]
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	* [[Ungeared beta]]		* [[Ungeared beta]]

	~~[[Category:Corporate_finance]]~~
	[[Category:Corporate_finance]]		[[Category:Corporate_finance]]
	[[Category:Compliance_and_audit]]		[[Category:Compliance_and_audit]]
	[[Category:Manage_risks]]		[[Category:Manage_risks]]

imported>P.F.cowdell@shu.ac.uk: Categorise page

2014-08-15T13:05:11Z

Categorise page

← Older revision		Revision as of 13:05, 15 August 2014
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	* [[Ungeared beta]]		* [[Ungeared beta]]

	[[Category:~~Regulation_and_Law~~]]		[[Category:Corporate_finance]]
	[[Category:~~Business_and_Operational_Risk~~]]		[[Category:Corporate_finance]]
			[[Category:Compliance_and_audit]]
			[[Category:Manage_risks]]

imported>Doug Williamson: Extend categorisation to include Regulation.

2014-03-18T13:45:28Z

Extend categorisation to include Regulation.

← Older revision		Revision as of 13:45, 18 March 2014
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	== Business risk in the Capital Asset Pricing Model ==		== Business risk in the Capital Asset Pricing Model ==

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	* [[Ungeared beta]]		* [[Ungeared beta]]

			[[Category:Regulation_and_Law]]
	[[Category:Business_and_Operational_Risk]]		[[Category:Business_and_Operational_Risk]]

imported>Doug Williamson: Expand to incorporate regulatory definition. Source: Bank of England's supervision of financial market infrastructures Report March 2014, page 16.

2014-03-17T13:08:44Z

Expand to incorporate regulatory definition. Source: Bank of England's supervision of financial market infrastructures Report March 2014, page 16.

← Older revision		Revision as of 13:08, 17 March 2014
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	1.
			== Business risk in the Capital Asset Pricing Model ==


	In the capital asset pricing model (CAPM) this term is used to mean the ungeared beta of the business. Because it is ungeared it represents the overall risk (beta) of the business with its element of financial risk removed.		In the capital asset pricing model (CAPM) this term is used to mean the ungeared beta of the business. Because it is ungeared it represents the overall risk (beta) of the business with its element of financial risk removed.
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	2.
			== Business risk more generally ==


	The term is also used more broadly to refer to the set of risks taken by a business in seeking to operate in a normal competitive environment; launching a new product or investing in new equipment.		The term is also used more broadly to refer to the set of risks taken by a business in seeking to operate in a normal competitive environment; launching a new product or investing in new equipment.

	These decisions are risky and they may or may not result in the expected reward, they may even result in extreme cases in the demise of the business. Many firms attempt to limit the scale of this risk by restricting the range of their business to their core competences.		These decisions are risky and they may or may not result in the expected reward, they may even result in extreme cases in the demise of the business. Many firms attempt to limit the scale of this risk by restricting the range of their business to their core competences.



			== Business risk for financial regulatory purposes ==


			Any potential impairment of the regulated entity's financial position:
			#Resulting from a decline in revenues
			#Or an increase in expenses
			#Leading to a loss
			#That must be charged against capital.

imported>Doug Williamson: Category added 9/10/13 and spacing

2013-10-09T11:57:02Z

Category added 9/10/13 and spacing

← Older revision		Revision as of 11:57, 9 October 2013
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	1.		1.

	In the capital asset pricing model (CAPM) this term is used to mean the ungeared beta of the business. Because it is ungeared it represents the overall risk (beta) of the business with its element of financial risk removed.		In the capital asset pricing model (CAPM) this term is used to mean the ungeared beta of the business. Because it is ungeared it represents the overall risk (beta) of the business with its element of financial risk removed.

	Risk in this CAPM context is defined narrowly to mean the correlation between movements in the company's share returns and the returns to the overall market.		Risk in this CAPM context is defined narrowly to mean the correlation between movements in the company's share returns and the returns to the overall market.


	2.		2.

	The term is also used more broadly to refer to the set of risks taken by a business in seeking to operate in a normal competitive environment; launching a new product or investing in new equipment.		The term is also used more broadly to refer to the set of risks taken by a business in seeking to operate in a normal competitive environment; launching a new product or investing in new equipment.

	These decisions are risky and they may or may not result in the expected reward, they may even result in extreme cases in the demise of the business. Many firms attempt to limit the scale of this risk by restricting the range of their business to their core competences.		These decisions are risky and they may or may not result in the expected reward, they may even result in extreme cases in the demise of the business. Many firms attempt to limit the scale of this risk by restricting the range of their business to their core competences.


	== See also ==		== See also ==
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	* [[Operational risk]]		* [[Operational risk]]
	* [[Ungeared beta]]		* [[Ungeared beta]]


			[[Category:Business_and_Operational_Risk]]