What are the 4 main categories of risk?

What are the 4 main categories of risk?

1. Strategic Risk: This type of risk arises when a company makes decisions that could lead to unexpected outcomes. Examples include entering a new market, introducing a new product, or taking on a new partner.

2. Compliance and Regulatory Risk: This type of risk arises when a company fails to comply with laws, regulations, or industry standards. Examples include failure to comply with data protection laws, non-compliance with environmental regulations, or failure to meet safety standards.

3. Financial Risk: This type of risk arises when a company is exposed to potential financial losses due to market volatility, changes in interest rates, or other financial events. Examples include currency exchange rate fluctuations, interest rate fluctuations, or changes in the price of commodities.

4. Operational Risk: This type of risk arises when a company fails to properly manage its operations. Examples include breakdown of equipment, theft of data, or failure to meet customer service standards.