Performance Risk

From Open Risk Manual

Definition

Performance Risk in HR context captures all risks concerning adverse developments to the firm's human resource pool.

Examples

  • It 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 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

Contributors to this article

» Wiki admin