Business GCSE
Risk
What Risk means in Business GCSE, as defined for AQA, OCR, Pearson Edexcel.
Definitions of Risk
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Check what you remember
Read the wording for your board, then hide it and explain Risk in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
The chance that an event harms performance or causes loss, and it can be reduced by research, contingency planning, buffer stock, diversification and cash reserves.
The possibility of loss or damage from a known event, such as a competitor lowering prices, a supplier failing to deliver, or a product failing to sell.
Starting a business involves risks such as business failure, financial loss and a lack of security.
The probability of a negative outcome occurring as a result of a business decision.
The possibility of financial loss or failure when starting or running a business.
Topics that use Risk
- Competitive environment (AQA GCSE)
- The interdependent nature of business (OCR GCSE)
- The role of business enterprise and entrepreneurship (OCR GCSE)
- Risk and reward (Pearson Edexcel GCSE)
Related terms
- Reward
- Unique Selling Point (USP)
- Added value
- Business response
- Cash Flow Forecast
- Competition
- Competitive pressure
- Enterprise
Using Risk in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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