1. Risk Types Flashcards
Product Risk
The risk that the success of a company’s product may be different than expected
Commodity Risk
The risk that commodity prices fluctuate due to certain events
Market Risk
The risk arising from an adverse change in the value of an asset
Macro-economic Risk
Unexpected changes in the economy generally e.g. the impact that a recession will have on different entities
Social Trends
The risk that changes in society make your mode of business obsolete
Technological Risk
Risk that advancements in technology render your products obsolete
Industry Specific Risks
Risks that would only relate to the particular industry in question
Competitor Related Risks
Risks arising from the actions of your competitor developing a better product
Financial Risk
The risk that financial conditions are different from those expected
Event Risk
Risks arising from events that are outside the control of the organisation
Financing Risk
The risk of not being able to raise finance for an investment
Fraud Risk
The risk that the company might be subject to fraud by its employees
Reputation Risk
The risk that the company will lose its reputation due to perception that it has behaved unethically or inappropriately
Ethical Risk
The risk that the company’s policies may be viewed as unethical, or that individual employees may act unethically
Business Probity Risk
Arises from the unethical behaviour of an individual in a business process e.g. leaking confidential information
