📕 subnode [[@KGBicheno/four nonfinancial corporate risks]] in 📚 node [[four-nonfinancial-corporate-risks]]

Four nonfinancial corporate risks

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There are nine main corporate risks.

The four most important risks are nonfinancial

The four nonfinancial risks are:

  1. Operational
  2. Strategic
  3. Reputation
  4. Legal and regulatory

Operational

Tied to the day-to-day.

  • Anti-virus software lacking
  • Bad management
  • Bad financial reporting
  • People just doing their jobs wrong

Strategic

Companies don't invest when they should

  • Taxis losing market position to ride-share companies
  • Market disruption
  • Blockbuster ignored online streaming
  • eCommerce destroying bricks and mortar
  • New Coke and Crystal Pepsi are the converse
  • WiFi on airplanes before phones and tablets

Reputation

Reputation takes a long time to build and can vanish overnight

  • Product recall
  • Unethical leader being caught fiddling the books
  • Frontline worker doing something horrible but public

Legal and regulatory

The kinds of risks that come from Government and regulatory institutions

  • Subsidies
  • Rules and red tape
  • Regulatory challenges
  • Main reason for lobbyists
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