Module 15

• Risk management

  is the process of identification, analysis, and acceptance or mitigating uncertainty in investment decisions.
• Business risk 

  is the exposure a company or organization has to factors that will lower its profits or lead it to failure. 
• Strategic risk

  arises when a business does not operate according to its business model or plan. 
• Compliance risk

  primarily arises in industries and sectors that are highly regulated.
• legal risk

  is a specific type of compliance risk that occurs when a company fails to follow a government's rules for companies. 
• A contractual risk occurs when a company doesn't fulfill the obligations or liabilities in a business contract.
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  A dispute risk happens when a legal conflict with a customer, stakeholder, or community member interrupts a business' processes.
• Regulatory risks

  A regulatory risk can happen if a government regulator withdraws a company's license to operate.
• Operational Risk

  This risk arises from within the corporation, especially when the day-to-day operations of a company fail to perform.
• REPUTATIONAL RISK

  Any time a company's reputation is ruined, either by an event that was the result of a previous business risk or by a different occurrence, it runs the risk of losing customers and its brand loyalty.
• Human risks

  in business can arise from employees' failure to perform their essential duties in the workplace. 
• Financial risks

  can occur when a company doesn't perform debt management or financial planning tasks. 
• competition risk

  can happen when a competitor takes an increasing share of the market for a product or service. It's sometimes called a comfort risk
• Physical risks

  are threats to a company's physical assets, like equipment, buildings, and employees.