Table of Contents
A risk is the risk of loss associated with any business activity that threatens the capital employed. It can extend to profit reduction, loss of profit, capital reduction and capital consumption. On the other hand, the risk offers an opportunity to increase capital. The amount and time of a loss cannot be determined in advance.
The general entrepreneurial venture relates to the company as a whole. It is not included in the calculation because it is compensated in the profit. Insurance coverage is also not possible.
On the other hand, individual risks that relate directly to individual areas of the company, are foreseeable and can be calculated on the basis of empirical values, can be calculated or insured.
Types of possible individual ventures
Examples: guarantee obligations, replacement delivery, price reduction, rework, contractual penalty
Reference value: manufacturing costs of products
Examples: failed research and development
Reference value: development costs for the period
Examples: bad debts, currency loss
Reference variable: accounts receivable or sales
Examples: failures, impairments, premature end of use of fixed assets
Reference value: acquisition value or book value
Examples: shrinkage, deterioration in quality, devaluation of inventories, obsolescence of goods
Reference value: value of the average stock
Examples: material, work and construction errors, rejects, rework
Reference variable: Manufacturing costs of the products