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Technical risks

Efficient entrepreneurial activity usually involves the development of new technology and technology, the search for reserves and the increase of production intensity. However, the introduction of new technology and technology leads to the danger of man-made disasters that cause significant damage to nature, people and production. These are technical risks.

Technical risk is determined by the degree of organization of production, carrying out preventive measures (regular prevention of equipment, safety measures), possibility to carry out repair of equipment in-house by the business firm.

Technical risks can be subdivided:

  • probability of losses due to negative results of research works;
  • the probability of loss due to failure to achieve the planned technical parameters during design and technological developments;
  • The probability of losses due to low production capabilities, which prevents the results of new developments from being learned;
  • Potential for loss as a result of by-product or time-delayed problems caused by new technologies and products;
  • Potential for loss due to equipment failures and breakdowns, etc.

It should be noted that technical risk belongs to the group of internal risks, since the entrepreneur can have a direct impact on these risks and their occurrence usually depends on the activity of the entrepreneur himself.


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