What component of SWOT Analysis identifies potential business risks?

The component of SWOT Analysis that identifies potential business risks is "Threats." In SWOT Analysis, threats refer to external challenges that a business may face which can negatively impact its performance or objectives. These can include factors such as increased competition, changing market conditions, regulatory changes, or shifts in consumer preferences. By recognizing these threats, a business can develop strategies to mitigate risks and adapt to the external environment, thereby enhancing its resilience and sustainability.

Understanding threats allows companies to be proactive rather than reactive, positioning themselves to navigate challenges effectively. This contrasts with the other components. Strengths focus on the internal attributes that give a business an advantage, opportunities highlight favorable conditions in the environment that can be exploited for growth, and weaknesses are internal factors that might hinder the organization's performance. Each component plays a role in strategic planning, but only threats specifically address the potential risks that may arise from external sources.