Page 245 - RISK Management IC 86

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shareholders alike. The failure of debtors to settle
their debts can be another source of financial loss.
This happens mostly on overseas trade where the
goods are mostly sold on extended credit, where even
if the buyer is willing and able to pay, he may be
prevented from doing so because of exchange control
regulations or other restrictions imposed by the
government.

(iv) Personnel Risks - The success or failure of an
enterprise depends largely upon the ability, integrity,
and enthusiasm of its directors, managers, and
employees. The loss of a key man due to accident or
illness or death may jeopardize the success of a
programme, such as the negotiation of a major sales
contract.

A company may also incur heavy loss owing to
embezzlement of funds, passing of trade secrets to
competitors, or because of poor industrial relations.

(v) Environmental Risks - Society has become
increasingly aware of the damage and injury caused
by the release of contaminants into the air or water

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