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Seven Types of Business Risk

1. Strategic Risk


What happens when your operation deviates from your business model?


  • Technology changes

  • Competitive pressure

  • Legal changes

  • Shifts in customer demand

  • Mission creep


2. Legal Risk


Failing to comply with state or federal compliance regulation.


  • Corruption

  • Discrimination or harassment in your workplace

  • Workplace health and safety violations

  • Environmental regulations

  • Data storage issues

  • Contractual problems

  • IP protection


3. Financial Risk


Financial risks, or economic risks, that impact your company performance.

  • Cashflow issues

  • Interest rates

  • Bad debts

  • Scams


4. Operational Risk


External and internal events that can have a major impact on your ongoing operations


External

  • Natural disasters

  • Changes in laws and regulations

  • Cyber attack

Internal

  • Theft

  • Vandalism

  • Failures in technology

  • Changes in laws and regulations

  • Employee misconduct


5. Reputational Risk


Events that harm your business’ public image.


  • Bad publicity

  • Data breaches

  • Defective products

  • Workplace accidents


6. Global Risk


Major events that occur elsewhere but which impact our business environment


  • Pandemic

  • Natural disasters

  • Regional conflicts


7. Competitive Risk


Competitor changing their offering in the market


  • New value proposition

  • Changed pricing

  • New product or service

  • Staff poaching

Stay connected with our team and updates.

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