Performance Risk
From Open Risk Manual
Revision as of 13:36, 20 October 2020 by Wiki admin (talk | contribs)
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
