Enterprise Risk

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 :