In this short video Jim outlines the two concepts of risk and uncertainty in business and the subtle differences between them.
#alevelbusiness #risk #riskmanagement
VIDEO CHAPTERS
00:00 Introduction
00:30 Risk and uncertainty - compared
01:23 Examples of risk in business
03:03 Examples of uncertainty in business
VIDEO SUMMARY
This video is about the difference between risk and uncertainty in business.
Risk is the possibility that things don't happen as planned, and it can damage the business. The video lists cyber security and fraud, environmental damage, and supply chain shocks as some of the major risks for businesses. Businesses try to manage these risks through risk management.
Uncertainty, on the other hand, is the fact that nothing is certain in business. Managers have to deal with uncertainty all the time, and they try to manage it by being as informed as possible. The video gives the examples of market research, price elasticity of demand, breakeven output, choosing a supplier, and retaining employees as ways to manage uncertainty.
