RiskManagement_TypesOfRisk

Below are some types of risk that you may want to carefully think about. If you are involved in a mission and have not considered a mentioned type of risk, it may be a good idea to reevaluate and see if you can identify more risks. Keep in mind that it is very tough to be "to careful" in a risk identification scenario. Being Exhaustive in your search for risks that may be present in your mission can pay serious dividends throughout the mission's execution.

 

- Financial Risk

Financial risk is an umbrella term for multiple types of risk associated with financing, including financial transactions that include company loans in risk of default. Risk is a term often used to imply downside risk, meaning the uncertainty of a return and the potential for financial loss.

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- Strategic Risk

Strategic risks can be defined as the uncertainties and untapped opportunities embedded in your strategic intent and how well they are executed. As such, they are key matters for the board and impinge on the whole business, rather than just an isolated unit.

 

- Compliance/Effectiveness

 

- Operational/Planning

Operational risk is "the risk of a change in value caused by the fact that actual losses, incurred for inadequate or failed internal processes, people and systems, or from external events (including legal risk), differ from the expected losses"

 

- Environmental, Health & Safety Risks

The Goal of Health, Safety and Environment (HSE) is to protect employees, the public, the environment and to comply with applicable laws and protect the Company's reputation. HSE departments, of some companies are responsible for environmental protection, occupational health and safety at work​.

 

- Ethical & Legal Risks

 

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