There are several causes of financial uncertainty in business:
1. Economic Fluctuations: Changes in the macroeconomic environment, such as inflation rates, unemployment levels, and GDP growth can influence consumer spending and business investment. 2. Market Dynamics: Shifts in consumer preferences, competition, and technological advancements can create unpredictability in revenue streams. 3. Regulatory Changes: Modifications in laws, taxes, and trade regulations can impact operational costs and business strategies. 4. Operational Risks: These include unforeseen events such as supply chain disruptions, machinery breakdowns, or cybersecurity breaches. 5. Political Instability: Political events, including elections, policy changes, and international conflicts, can create an unpredictable business environment.