Risk Management Terms by Category

 

Risk Management Terms by Category

Risk Management Terms

Risk CategoryTerms
Strategic RiskCorporate governance, competitive advantage, market share, reputation, merger and acquisition, business model
Operational RiskProcess failure, human error, system failure, fraud, supply chain disruption, business interruption, disaster recovery
Financial RiskMarket risk, credit risk, liquidity risk, foreign exchange risk, interest rate risk, investment risk, fraud
Compliance RiskRegulatory compliance, legal liability, data privacy, anti-money laundering, sanctions, intellectual property
Technological RiskCyber security, data breach, system failure, technology obsolescence, data loss
Human Capital RiskEmployee turnover, talent acquisition, employee performance, workplace safety, employee misconduct
Reputational RiskPublic relations, brand management, crisis management, social media, customer satisfaction

Additional Risk Management Terms

TermDefinition
Risk assessmentIdentifying and evaluating potential risks
Risk mitigationDeveloping strategies to reduce the impact of risks
Risk transferShifting risk to a third party, such as through insurance
Risk avoidanceEliminating or avoiding a risk altogether
Risk acceptanceAccepting the risk and its potential consequences
Risk toleranceThe level of risk an organization is willing to accept
Risk appetiteThe amount of risk an organization is prepared to take on

Strategic Risk Terms

TermDefinition
Corporate GovernanceThe system of rules and processes by which a company is directed and controlled
Competitive AdvantageA factor or circumstance that allows an organization to outperform its competitors
Market ShareThe percentage of a market that a particular company or product captures
ReputationThe overall perception of a company or brand in the public eye
Merger and AcquisitionThe combination of two or more companies into a single entity
Business ModelA company's plan for making a profit

Financial Risk Terms

TermDefinition
Market RiskThe risk of losses due to fluctuations in market prices, such as interest rates, exchange rates, and commodity prices.
Credit RiskThe risk of loss due to a borrower's failure to repay a loan or meet other contractual obligations.
Liquidity RiskThe risk of incurring losses due to the inability to sell assets or raise cash quickly enough to meet financial obligations.
Foreign Exchange RiskThe risk of loss due to fluctuations in exchange rates.
Interest Rate RiskThe risk of loss due to changes in interest rates.
Investment RiskThe risk of loss due to the decline in value of investments.
Operational RiskThe risk of loss due to inadequate or failed internal processes, people, and systems, or external events.

Compliance Risk Terms

TermDefinition
Regulatory ComplianceAdherence to laws, rules, and regulations imposed by government agencies.
Legal LiabilityThe responsibility for damages or injuries caused by negligence or wrongdoing.
Data PrivacyProtecting and handling sensitive information according to legal and ethical standards.
Anti-Money Laundering (AML)Preventing the illegal activities of generating money through illegal actions.
SanctionsPenalties or restrictions imposed on a country, organization, or individual.
Intellectual PropertyIntangible assets such as patents, copyrights, and trademarks.

Technological Risk Terms

TermDefinition
Cyber SecurityProtecting computer systems and networks from digital attacks.
Data BreachUnauthorized access to sensitive information.
System FailureThe inability of a system to perform its intended function.
Technology ObsolescenceThe process of becoming outdated or irrelevant.
Data LossThe accidental or intentional permanent deletion of data from a storage device.

Human Capital Risk Terms

TermDefinition
Employee TurnoverThe rate at which employees leave a company and are replaced.
Talent AcquisitionThe process of identifying, attracting, and hiring qualified candidates.
Employee PerformanceThe level at which an employee successfully completes job duties.
Workplace SafetyProtecting employees from harm or injury while on the job.
Employee MisconductViolations of company policies or laws by employees.

Reputational Risk Terms

TermDefinition
Public RelationsManaging the spread of information between an individual or an organization and the public.
Brand ManagementThe process of creating and maintaining a strong brand identity.
Crisis ManagementStrategies for leading an organization through a crisis.
Social MediaOnline platforms used for social interaction and content sharing.
Customer SatisfactionA measure of how satisfied customers are with a product or service.