Every business contends with risks that can affect how well it performs and, ultimately, whether it succeeds or fails. But business risks don’t affect every organization in the same way. As a result, company leaders must not only know the particular risks their businesses face but also the likelihood of and degree to which those risks will cause problems. This is all part of risk management — the process of identifying, assessing and controlling potential business risks.
The following are 13 well-established and emerging — and sometimes intertwined — types of business risks that business leaders and risk management teams need to understand.
1. Strategic risk
Strategic risk relates to issues that could affect a company’s ability to execute against its strategic objectives and achieve its business goals. This type of risk also concerns an organization’s competitive…
