Risk Categories

Risk Categories - Industry/Market Risk Changes in the...

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Industry/Market Risk Changes in the competitive environment could have a profound effect on a company. Events in this area could range from an increase in market share of competitors, changes in win ratios against those competitors or other factors related to the competitive environment. In addition there may be factors that effect the industry as a whole, such as change in demand, industry stability or business consolidations. Many of the risk in this category are beyond the span of control of the organization. Legal and Regulatory Requirements (Internal/External) Changes in laws or regulations could effect business processing. Concerns in this area may include changes in corporate tax laws, government required mandates such as the recent changes in consumer debt disclosures, acts of congress such as the Sarbanes-Oxley Act in the United States, or changes that might results as the company becomes listed as a public company. There are also many industry requirements that while not laws must be complied with for the company to be allowed to continue in business. An example of this is the Payment Card Industry Data Security Standards (PCIDSS), which requires companies handling consumer credit card information to provide adequate security over the information. While not a government requirement, companies must still comply Geo Political Risk Adverse political actions in a country where services are provided or goods are manufactured could impede ability to generate and collect revenue. These risks might include country wide political unrest,
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Risk Categories - Industry/Market Risk Changes in the...

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