How is "business risk" defined in global business?

In the context of global business, "business risk" is defined as the probability of financial loss arising from the unique challenges and uncertainties that come with operating across multiple countries. This includes a range of factors such as political instability, changes in regulatory environments, economic fluctuations, cultural differences, and the complexities of managing operations in diverse legal systems.

Recognizing these risks is crucial for companies as they venture into international markets, where the business environment can be significantly different from their home market. Effectively assessing and managing these risks allows businesses to make informed decisions and develop strategies that mitigate potential financial losses while capitalizing on growth opportunities in the global marketplace.