A risk can be defined as something, if left un-catered or unaddressed to, might prevent any organization from achieving their objectives. We have a team of Risk Advisory experts at AMA, who can assist organizations in multiple areas by providing excellent risk advisory services. Organizations all around the world, identify risk as a source of competitive benefit and by understanding and managing risk better, can prove their true potential on producing and safeguarding value for all stakeholders.
There are four types of Risks which can be categorized as Operational, Financial, Strategic and Compliance risks.
The risks that an organization experiences in the process of performing its day-to-day business operations, procedures, and systems are referred to as operational risk. It is hugely reliant on human factors, such as errors or failures caused by a company’s workers’ actions or decisions.
Strategic Risk is known as the risk that an organization faces as a result of poor business decisions. This risk is often a key component in evaluating a company’s worth, especially when the company loses its value in a short amount of time.
Financial Risk is referred to as when a company’s cash flow may be inadequate to satisfy its obligations—namely, its loan repayments and other debts. This can occur as a result of management decisions, especially those made by corporate financial experts, as well as the performance of the firm’s products.
Compliance Risk is basically an organization’s prospective exposure to legal penalties, financial forfeiture, and material loss which as a result of failing to operate in line with industry rules and regulations, internal policies, or suggested best practices.