Hello I’m wondering which category of non-systematic risk an employee strike would fall under. Is it just a business risk? otherwise how would it be classified.
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Great question! An employee strike would primarily fall under business risk. That’s because strikes can disrupt operations and may be a sign of underlying issues, like employee dissatisfaction or management problems.
However, it could also link to regulatory risk if there are laws about labor practices that are involved in the strike. But generally, you’d categorize it as business risk since it mainly affects how the company operates.
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Justin is correct. Strikes are generally company specific. Also, political risk is more closely associated with developing foreign markets where the political or financial structures are vulnerable to major adverse events like a coup.
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