Overview
Enterprise risk refers to the measurement and management of risk as faced by a company. One of the primary sources of risk, is financial risk which is detailed in the financial risk corner.
However, enterprises face non financial risks as well. The measurment of these risks is more difficult than financial risk (which is difficult in itself). This corner discusses non financial risk management techniques.
Operational Risk
Legal Risk
Reputation Risk
Product Firm Risks
Supply Chain Risk
Liquidity Risk : liquidity risk is the risk that the firm will face a payment due to a creditor, but have all its assets locked up in non-liquid assets, ones that cannot typically be used to pay a debt.
Measuring Risks
Non financial risks tend to be harder to measure. There are generally two approaches to trying to get an estimate of the risk distribution. Top Down
Bottom Up :