Risk Categories

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The following are categories can be used to assist in identifying potential areas of risks.

Strategic/Commercial

  • Management underperform against expectations
  • Collapse of contractors
  • Failure of suppliers to meet contractual commitments
  • Changes in Market
  • Fraud/theft
  • Partnership failing to deliver
  • Lack of capital investment

Economic/Financial/Market

  • Exchange rate fluctuation
  • Interest rate instability
  • Inflation
  • Shortage of working capital
  • Market developments

Legal and Regulatory

  • New or changed legislation
  • Failure to obtain approval e.g. planning permission
  • Loss of intellectual property rights
  • Failure to agree contract
  • Changes to tax structure
  • Health and Safety

Organisation/Management/Human Factors

  • Management incompetence
  • Inadequate policies and procedures
  • Poor leadership
  • Conflict of interests
  • Inadequate staff skills

Political

  • Change of government policy
  • Change of government
  • War/Civil unrest
  • Adverse public opinion

Environmental

  • Natural disasters
  • Storms
  • Pollution incidents

Technical/Operational/Infrastructure

  • Inadequate design/preparation
  • Human Error
  • Infrastructure failure
  • Set Up Costs
  • Transport