Performance Risk
From Open Risk Manual
Definition
Performance Risk in Human Resources context captures risks concerning adverse developments to the firm's human resource pool (people employeed by the firm in various forms).
Components
- Performance risk includes Key Person Risk (the impact of defections of key individuals) and
- The risk of under-performance of employees versus agreed contracts.
Notes
In Credit Risk context performance risk is associated instead with a party’s ability to meet its obligations under a contract, in particular to procure, manufacture and ship goods, or provide services in a timely fashion according to quality standards
