(a) Business risks arise due to uncertainties :
A business can’t have any control over future happenings due to uncertainty about future. Change in demand, change in govt, policy etc are some of the examples of uncertainty which create risks for business because the welcome of these future events is not known in advance.
(b) Risk is an essential part of every business : Every business is subject to one or the other kind of risk. No business can avoid risk. Though risk can be minimized but can’t be eliminated.