Final answer:
Risks related to cultural and business ethics span across legal, reputational, operational, and financial areas with variable internal and external probabilities. Threats include loss of trust and legal issues, with consequences affecting finances and reputation. Strategies to manage these risks include mitigation, avoidance, transference, and acceptance.
Explanation:
When considering a company's exposure to risk in regards to cultural and business ethics, there are different types that must be considered including legal risks, reputational risks, operational risks, and financial risks. Rating these risks on a scale from 1 to 10 in terms of internal/external probability is challenging without specific details about a particular company; however, generally, ethical risks tend to be higher internally because the company can control or influence its own culture more than the external environment. Threats to the company may include loss of customer trust, legal sanctions, or employee discontent. The potential consequences can range from financial penalties to severe damage to the company's brand or loss of market share. Common risk strategies include mitigation (implementing policies to reduce risk), avoidance (not engaging in high-risk activities), transference (such as insurance or contracts), and acceptance (recognizing and preparing to deal with the consequences of risk).