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    Business and Financial Risk

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    Agree or Disagree. Why?

    Axiom 9: All risk is not equal since some risk can be diversified away and some cannot. The process of diversification can reduce risk, and as a result, measuring a project or an asset's risk is very difficult.

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    Yes I agree that risks are not equal.

    Risk can be classified as:
    1. Diversifiable risk : It can be reduced by diversification
    2. Non diversifiable risk
    It is a project specific or company specific risk

    Organization is affected by two type of risks:
    1. Business risk measures the variability in the ...

    Solution Summary

    The solution explain in detail the concept of risk in the organization such as business risk and financial risk.