Following are different economic and non – economic risks: 

1. Risks relating to liberalization –

 It means an activity under which the rules, controls and prices are liberalised or relaxation is given in rules, controls, with an objective to increase the rate of economic growth.

2. Monetary Policy Related Risk – 

This policy aims at controlling the amount of money and credit as well as the banking activities of a country. 

3. Risks Related to Economic Trends and Conditions – 

It includes components like national income, level of economic development, employment conditions, the purchasing power of money, trade cycles, etc., which have a direct impact on business risks. 

4. Risks Related to Currency and Capital Market Condition – 

When the financial market works favourably in the right direction, adequate funds are available for development and this reduces the risk of fund management. 

Non – Economic Risks 

1. Risk Related to the Population – 

Business is not untouched from the changes in the level of population of a country. The increase in population can also be a problem resulting in more risk. 

2. Risk Related to Climate – 

Suitable temperature, rainfall, humidity, cold, are important parts of climate. Any imbalance including less rainfall, extreme fluctuation in temperature, etc. affects the demand and supply of business commodities. 

3. Risk related to Political Instability – 

Political changes may bring changes in the business structure. Business risk increases with political unrest and especially in the condition of ‘President’s Rule’. Only a stable political environment provides the desired protection and promotion to business. 

4. Risk related to the socio-cultural environment – 

In the modern world, many organised curriculums have been started to encounter and minimise risks, such as – risk management, strategy management, etc. Though the risks can’t be fully eliminated, one can minimise their negative effects through efficient risk management, and thus, the existence of business can be protected.