what are internal risks that can impact a business 
internal risks that can impact a business often come from decisions made by the management or executive team in pursuit of growth these decisions can create physical or tangible risks for example on site risks such as fires equipment malfunctions or hazardous materials can jeopardize production endanger employees and lead to legal or financial penalties policies that guarantee a safe working environment would in this instance be an effective strategy for managing internal risks the bottom linein business risks are factors that an organization encounters that may lower its profits or cause it to fail sources of risk can be external such as changes in what consumers want changes in competitor behavior external economic factors and government rules or regulations they can also be internal such as decisions made by management or the executive team no company can completely avoid risks especially because many risk factors are external however businesses can put risk management strategies into place these strategies can be used to reduce risk and to mitigate the impact of risks when they arise by documenting the sources of risk and creating a strategic plan that can be repeated businesses can reduce the overall impact of risk and deal with it more efficiently and effectively in the future 