Business Risk

From Open Risk Manual

Definition

Business Risk denotes the category of risk types facing an organization that emanate from its pursuit of business objectives but are not explicitly linked to specific contracts the organisation is involved in. There is a wide variety of such risk types, leading to a number of subcategories, for example

  • franchise risk and other risks associated with the quality, vision and positioning of the organisations business model and its management
  • various operational risk types
  • externalities the firm may be generating through its operations etc.


The complementary category of Contractual Risks covers risk types that are more sharply defined in connection with actual contracts the organization enters into

Risk Taxonomy

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