Operational risk refers to potential losses caused by internal failures such as system and process breakdowns, human error or external events that disrupt day-to-day business activities.
Strategic risk involves the dangers that arise from making poor business decisions, misjudging market trends or executing faulty strategies, which can harm long-term goals.
Reputational risk is the potential damage to a company's reputation, leading to a loss of trust and business, often triggered by negative public perception or scandals.
Compliance risk arises when a business fails to adhere to legal, regulatory or industry standards, potentially resulting in fines, penalties or operational disruptions.
