Difference between revisions of "Performance Risk"

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Latest revision as of 12:36, 20 October 2020

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