The nature of business risk can be observed from two perspectives: asset risk and pure risk.

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Business risk typically refers to the exposure a company or organization has to factors that will lower its profits or lead it to fail. It is often categorized into systematic risk (market risks that cannot be controlled) and unsystematic risk (company or industry-specific risks). Asset risk and pure risk are concepts within risk management; pure risk involves situations that can only result in loss or no change, while asset risk could be considered under unsystematic risks but is not a primary categorization of business risk.

The Nature of Business Risk Can Be Observed from Two