Non-Financial Risk is the risk of loss due to events that are not directly related to financial performance, such as Operational'>operational, Legal'>legal, Reputational'>reputational, and Strategic'>strategic risks. It can also include risks related to natural disasters, political instability, and other external factors.
Non-financial risk is a type of risk that is not related to the financial performance of a company. It is the risk of potential losses due to events or circumstances that are not directly related to the financial performance of the company. Non-financial risk can include Operational'>operational, Legal'>legal, Reputational'>reputational, Strategic'>strategic, and Compliance'>compliance risks.
Operational'>Operational risk is the risk of losses due to inadequate or failed internal processes, people, and systems, or from external events. This type of risk can be caused by a variety of factors, such as natural disasters, human error, or technological failure. Operational'>Operational risk can also be caused by inadequate or failed internal processes, such as inadequate training or inadequate risk management.
Legal'>Legal risk is the risk of losses due to Legal'>legal issues, such as lawsuits, regulatory violations, or contractual disputes. This type of risk can be caused by a variety of factors, such as inadequate Legal'>legal advice, inadequate Compliance'>compliance with laws and regulations, or inadequate risk management.
Reputational'>Reputational risk is the risk of losses due to damage to the company’s reputation. This type of risk can be caused by a variety of factors, such as negative publicity, customer complaints, or inadequate risk management.
Strategic'>Strategic risk is the risk of losses due to inadequate or failed strategies. This type of risk can be caused by a variety of factors, such as inadequate market research, inadequate Strategic'>strategic planning, or inadequate risk management.
Compliance'>Compliance risk is the risk of losses due to inadequate or failed Compliance'>compliance with laws and regulations. This type of risk can be caused by a variety of factors, such as inadequate Compliance'>compliance with laws and regulations, inadequate risk management, or inadequate training.
Non-financial risk can have a significant impact on a company’s financial performance. Companies should take steps to identify, assess, and manage non-financial risks in order to minimize potential losses and maximize financial performance.