A third factor in determining a fair profit percentage is risk. Risk is divided into two types. The first is insurable and the second is uninsurable risks. Insurable risks are mitigated and have very little to no effect on the profit formula due to transferring the risk to a third party known as the insurance underwriter. Uninsurable risks are non-transferable and therefore the profit must be adjusted to compensate for this type of risk.
Harassment is a term used with human resources to refer to when employees use bullying or sexual advances towards other employees to manipulate or control them. The owner is susceptible to repercussions from the affected employee if the owner fails to take action. This alters production, the working environment and overall company-wide culture.