Describe six types of loss that a company may face when investing in another country unless the risks are managed.

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The six types of loss that a company may face when investing in another country unless the risks are managed:

(a) Productivity loss: Losses that result from an organization's inability to deliver its products or services.

(b) Response loss: Losses that are associated with managing the event itself. This form of loss is most common in a company.

(c) Replacement loss: The costs associated with the replacement of a capital asset.

 (d) Fines: Penalties levied against an organization through civil, criminal or contractual actions, usually the result of a Confidentiality related scenario.

(e) Reputation damage: Losses associated with an external actor's perception of your organization whereby its main value proposition is diminished.

(f) Competitive advantage: Losses associated with a diminished competitive advantage.

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