The three internal risk factors are human factors, technological factors and physical factors. Risk arising from human factors can include union strikes, dishonesty by employees, ineffective management or leadership, and failure on the part of external producers or suppliers. Technological risk includes unforeseen changes in delivery or distribution of a company's product or service. Physical risk is the loss or damage to the assets of a company. A company can reduce internal risks by hedging the exposure to these three risk types.