it will be wrong to consider loss as risk because risk is not but its possibility.explain briefly what does it mean.
Riya,
Yes, it will be wrong to consider loss as risk because risk is not loss but its possibility. Some risks like carelessness, riots and strikes of employees may stop production which negatively affects the business and the business will suffer losses. However, we know that profit is the reward or compensation for the risk taken in the business. Therefore, it is considered that risks are not losses but sometimes it may bring a situation of losses for the business.
Yes, it will be wrong to consider loss as risk because risk is not loss but its possibility. Some risks like carelessness, riots and strikes of employees may stop production which negatively affects the business and the business will suffer losses. However, we know that profit is the reward or compensation for the risk taken in the business. Therefore, it is considered that risks are not losses but sometimes it may bring a situation of losses for the business.