Investing
An investor purchases a stock based on the company's price/earnings ratio. The investor fails to consider liquidity risks associated with the company. The company has a large debt payment in the near future that it can not make. When the stock declines as the company defaults the investor is taken by surprise.Product Development
A company with a failure is not an option culture ignores the risk that a product might fail on the market. They invest everything they have into a single new product. If the product fails the company may face financial distress.Sustainability
A country allows a commercial interest to pollute the air and water without consideration of costs to health, quality of life and the environment.Safety
A consumer purchasing a car doesn't check safety ratings and features. They unknowingly purchase a car that insurance companies view as amongst the most dangerous new cars on the road.Projects
A construction project fails to consider how neighbors will react to the noise and commercial disruptions they intend to cause. The project runs into a variety of disputes that might have been mitigated by engaging neighbors early on.| Overview: Unmanaged Risk | ||
Type | ||
Definition | A relevant risk that isn't considered by a suitable risk management process. | |
Related Concepts | ||
