How do you actually calculate business risks?

[King Belieal]

If you are not taking risks in business, you are obviously not ready for growth. But then, the other side says that people should only take calculated risks in business. The big question is then, "How do we actually calculate business risks"?

 

[eLdavis]

The first step to take would be to pin point the risk involved in the said business, then find out the level of possibility you might experience such risk while running the business and most importantly if you can handle the level of risk that comes with it.

 

[Kross]

Calculated risks are those risks that you have weighed and ascertained if you can handle the worst case scenario with it.

 

[Augusta]

List all potential risks your business faces, such as strategic, compliance, operational, and reputational risks. Estimate Potential Loss (Impact): Quantify the financial or other costs if the risk materializes.