1) What is the difference between an internal risk and an external risk? a) Internal risks are entirely within a company's control, such as market demand, while external risks are uncontrollable events like weather patterns. b) Internal risks are those that depend on the company's management and internal operations, such as lack of diversification. External risks originate from the external environment, like competition or changes in market conditions. 2) What is the difference between a risk and a hazard? a) A hazard is a potential source of harm or danger, while risk involves assessing the likelihood and severity of harm resulting from exposure to that hazard. b) A hazard is a known risk that always leads to negative consequences, whereas a risk can sometimes have positive outcomes for a business. 3) What are the categories of risks that affect businesses? a) Business risks are solely financial in nature and do not encompass operational or reputational risks. b) Business risks can be categorized into several types:Compliance risk, Legal risk, Strategic risk

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