Glossary definition: Strategic Risk

Strategic Risk: Risks to Achieving Business Goals

Strategic risk is the risk that an organization takes when it makes strategic decisions, such as entering a new market, introducing a new product, or changing its business model. This type of risk is associated with uncertainty and the potential for losses due to unexpected events or changes in the external environment. Strategic risk can include a wide range of risks, such as financial, operational, legal, reputational, and political risks. Strategic risk management involves identifying, assessing, and managing the risks associated with strategic decisions. Risk management strategies can include developing contingency plans, diversifying investments, and implementing risk mitigation measures. Strategic risk management is an important part of any organization’s overall risk management strategy.