Risk Management - Five Types of Risk

3 important questions on Risk Management - Five Types of Risk

Which types of risk are to be distinguished?

- Hazard risks
- Financial risks
- Operational risks
- Strategic risks
- Business risks

What are Operational risks, and what risks are included in Operational risks?

Operational risks are those related to the entity’s ongoing, everyday operations. Furthermore, operational risk is the risk of loss from inadequate or failed internal processes, people, and systems.

What are Strategic risks, and what risks are included in Strategic risks?

Strategic risks pose a threat to an entity's ability to employ its strategy effectively and achieve its strategic objectives.
- Global economic risk
- Political risk (governments will change rules)
- Regulatory risk
- Risks related to global market conditions
- Reputation risk
- Leadership risk
- Brand risk
- Changing customer needs

The question on the page originate from the summary of the following study material:

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