competitive (adjective, com-pet-i-tive, /kəmˈpet̬ət̬ɪv/) risk (noun, risk, /rɪsk/)
Definition: is a probability, a chance that your competitor’s actions will negatively affect your business. The term signifies the potential losses your firm or organization may experience because of the competitive forces of other businesses in your field. Oftentimes, especially if a business is operating in the conditions of a healthy competitive market, competitive risks may actually result in numerous improvements such as better quality control, cost reductions, improved product quality, and so on. There are many factors that might influence the competitive risk, for instance, competitor’s innovations, pricing, available resources, favorable location, efficient distribution, effective promotion, etc.
In a Sentence:
- Risk management is a crucial component of every business. It will help you estimate and maybe even prevent the competitive risk.
- These days, the market grows extremely fast, increasing the competition and creating more causes for a competitive risk.
- Managing your competitive risks is all about preparing your business to deal with the upcoming situations, no matter how critical they may be.
Synonyms and related words: competitive market, competitive strategy, competitive bidding, competitive advantage, risk management
