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40 Examples of Organizational Risk

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Organizational risk is the potential for future losses and failures at the level of an organization. The following are common examples:

Strategic Risk

The risk that your strategy will fail.

Operational Risk

The potential for failed or inefficient business processes.

Health and Safety Risk

The risk of health and safety incidents.

Supply Chain Risk

The risk of supply chain problems that disrupt your operations or sales.

Country Risk

Risks to your operations and sales in a particular country due to factors such as political instability.

Technology Risk

Risks related to technology failure, inefficiency and cost.

Cybersecurity Risk

The risk of cybersecurity incidents.

Product Liability Risk

The risk that your products will generate liability.

Financial Risk

A general term for risk to revenue and the risk of costs.

Interest Rate Risk

Interest rate volatility such as increased interest rates that raise your cost of capital.

Credit Risk

The risk that customers and other counterparties such as partners won’t pay you.

Exchange Rate Risk

Adverse exchange rate volatility.

Liquidity Risk

The risk that you will run out of the cash required to continue operations and to meet obligations.

Partner Risk

The risk that a partner will fail to meet their obligations to you.

Third-party Risk

Risks related to your extended partnerships and their partnerships such as a subcontractor who works for one of your partners.

Contract Risk

The risk that a counterparty will not meet their obligations under a contract.

Project Risk

The risk of project failure or that projects won’t achieve target business outcomes.

Integration Risk

The risks associated with the integration of organizations, processes, systems and data.

Budget Risk

The risk of going overbudget for operations, projects or overhead.

Schedule Risk

The risk of missing important deadlines.

Employee Retention Risk

Loss of key employees or generally high employee turnover.

Competitive Risks

The risk of increased competition, loss of competitive advantage and market share erosion.

Pricing Risk

An adverse pricing environment such as a price war.

Business Model Risk

The risk of disruption to your industry that invalidates your business model.

Quality Risk

The risk that the quality of your products, services and operations will fail to meet a reasonable standard.

Market Risk

Poor market conditions such as low demand.

Commodity Risk

Risks related to the price or cost of commodities.

Economic Risk

The risk of difficult economic conditions such as inflation.

Recession Risk

The risk of an economic downturn.

Concentration Risk

Risks related to overdependence on a particular customer, partner, product or location.

Political Risk

Political events that have an adverse effect on your operations such as political instability, protests or strikes.

Compliance Risk

The risk of noncompliance with laws, regulations and standards.

Regulatory Risk

The risk of new regulations.

Taxation Risk

The risk of unexpected taxation such as an unfavorable tax ruling.

Communication Risk

The potential for losses due to communication failures.

Environmental Risk

The risk that you or a partner will damage the environment.

Social Responsibility Risk

The risk that you or a partner will have a negative impact on communities.

Reputational Risk

The risk of damage to your reputation and brand image.

Disaster Risk

Major disruptions caused by disasters.

Governance Risk

Failures of corporate governance.
Next: Risk Identification
More about organizational risk:
Business Risks
Cybersecurity Risk
Data Loss
Disaster Risk
Platform Risk
Process Risk
Progress Trap
Risk Planning
Security Risk
Tactical Risk
Technology Risk
Weather Risk
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