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Enterprise risks are potential losses that are relevant at the top level of an organization. These require the attention of corporate governance and executive management. The following are illustrative examples.
ReputationFailures that damage the confidence of stakeholders such as investors, regulators, customers, partners, employees and communities. SustainabilityThe risk that an organization will have a negative impact on the environment or human quality of life.The risk of financial losses such as credit risk, refinancing risk, revenue risk and exchange rate risk.
Liquidity RiskThe risk that you will run out of the cash required to meet your financial obligations at a point in time. Risks related to the economy such as the risk of recession, inflation or deflation.The risk of operations failures that cause costs, declining revenue or reputational issues. For example, a software company that incurs costs, lost revenue and compliance issues after a series of IT infrastructure failures.
The risk that you will fail to comply to laws, regulations and standards.The risk of legal disputes. For example, the risk that a partner will fail to meet its contractual obligations to you. The risk of new regulations that threaten your business model.The risk that competitors will take away your revenue, customers and partners.
Strategic RiskThe risk that a strategy will fail.Programs & ProjectsThe risk that programs and projects will experience failures such as cost and schedule overruns.The risk of declining brand value due to factors such as brand image or brand legacy problems. For example, an IT consulting firm that gains a reputation for cost overruns and old thinking.
Supply RiskThe risk of supply problems such as disruptions to a supply chain.Information SecurityInformation security risks such as the risk of data leaks and disruptions to your services.Health & SafetyRisks to the health and safety of people including employees, customers and communities that are impacted by your operations.DisasterThe risk of disasters and other large scale negative events such as war.|
| Type | | | Definition | Potential losses that are relevant at the top level of an organization. | | Related Concepts | |
Risks
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