2.Internal factors

*Risk Management and Assessment*

political regime, culture and tradition.

entire economy and in selected sectors.

reliability of a partner.

general classification:

1.External factors

the country

4.Social risk—related to the way people in a particular country behave, religion,

5.Risk of contingent events—e.g. natural disasters and calamities (flood, earthquake), accidents caused by social conflicts and prohibited acts (strike, arson).

6.Political risk—concerns the possibility of intervention on the part of state authorities in particular countries or on an international scale, both for the

7.Economic risk—related to the possibility of a change in a country's economic policy and legal regulations concerning, e.g. tax or foreign exchange law.

8.Risk of events—resulting from unexpected events which influence a particular

9.Transfer risk—concerns situations in which there are obstacles in transferring

10. Legal risk–risk of loss due to a failure to conduct transactions due to a lack of legal regulations or insufficient documentation and lack of financial

More specific areas of risk are identified depending on the specific nature of a particular business activity. The following conclusions can be drawn from the

entity or investment but without influence on the entire market.

funds abroad or changing the currency of such funds.

• Lack of a criterion which would unanimously identify risk.

• Strong relations among particular types of risk.

There are two main groups of factors which influence risk [13]:

• Risk is inherent to the financial market.

• Strong and bidirectional relations among factors which cause risk.

• Risk is determined by external and internal factors at the same time.

The list of types of risk presented above is not an exhaustive one. Given the complexity of business activity, managers of public organizations are constantly exposed to various forms of this phenomenon [7]. Although not all of the risks enumerated above can be predicted or controlled, one should be aware of their existence and limit their occurrence and impact on organization to the greatest extent possible. Since there are so many factors causing risk, it is simply impossible to avoid it. Moreover, some of these factors are beyond the control of an enterprise.

• General economic factors following from a country's economic policy and condition of the economy (economic growth or downturn, changes in the level of inflation, significant changes in the central bank's policy, budget deficit) • Political factors which consist in a change of relations and direction taken by

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