All businesses experience competition and have to manage risk. We have compiled a list of 30 competition and risk management terms. Please take a look and se what words are new for you.
Beginner
| Word | Meaning | Example Sentence |
|---|---|---|
| Compete | To try to win against others. | Our store competes with the one across the street. |
| Risk | The possibility of something bad happening. | Starting a business involves some risk. |
| Plan | A detailed proposal for doing something. | We have a solid business plan. |
| Market | A place where goods are bought and sold. | The local farmers’ market is open on Saturdays. |
| Price | The amount of money something costs. | The price of gasoline has increased. |
| Customer | Someone who buys goods or services. | We value our customers and their feedback. |
| Goal | Something you want to achieve. | Our main goal is to increase sales this quarter. |
| Strategy | A plan of action designed to achieve a long-term aim. | Our marketing strategy focuses on social media. |
| Benefit | A good or helpful result or effect. | There are many benefits to working here. |
| Loss | The fact or process of losing something. | The company suffered a financial loss. |
Intermediate Competition & Risk Management Terms
| Word | Meaning | Example Sentence |
|---|---|---|
| Rivalry | Competition between businesses. | The rivalry between the two tech companies is intense. |
| Mitigate | To lessen the severity of something. | We need to mitigate the risks associated with this project. |
| Implement | To put a plan or system into effect. | The new policies will be implemented next month. |
| Niche | A specialized segment of the market. | They found a niche market for their products. |
| Margin | The difference between the selling price and the cost. | Our profit margin is quite slim on that item. |
| Demand | The desire or need for a product or service. | There’s a high demand for electric cars. |
| Objective | A specific, measurable, achievable goal. | Our primary objective is to increase brand awareness. |
| Tactics | Actions carefully planned to achieve a specific end. | We used aggressive sales tactics to boost our numbers. |
| Advantage | A condition giving a greater chance of success. | Their experience gave them a competitive advantage. |
| Liability | Something for which a person or company is responsible. | The company faces potential legal liabilities. |
Advanced
| Word | Meaning | Example Sentence |
|---|---|---|
| Oligopoly | A market dominated by a small number of sellers. | The airline industry is often considered an oligopoly. |
| Diversification | The process of spreading risk by investing in a variety of areas. | Diversification is key to a successful investment portfolio. |
| Contingency | A possible future event or condition. | We need to develop a contingency plan. |
| Disruption | A disturbance or problem that interrupts a process. | The pandemic caused significant market disruptions. |
| Economies of Scale | Cost advantages obtained from increased production. | Large factories often benefit from economies of scale. |
| Market Penetration | The extent to which a product is sold in a market. | They are focusing on increasing their market penetration in Asia. |
| Key Performance Indicator (KPI) | A measurable value that demonstrates how effectively a company is achieving objectives. | Website traffic is an important KPI for our online store. |
| Synergy | The interaction of two or more organizations to produce a combined effect greater than the sum of their separate effects.1 | The synergy between2 the two departments led to innovative solutions. |
| Hedging | Protecting against financial loss by using offsetting transactions. | Their hedging strategy minimized their losses. |
| Arbitrage | The simultaneous buying and selling in different markets to profit from unequal prices. | Arbitrage opportunities are often quickly exploited by traders. |
We hope you enjoyed our Competition & Risk Management Terms.
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