Question

Identify three types of strategic risks

Answer 1

Strategic risk is defined as the risk arising from organization capability to execute the strategy. Below are the three types of strategic risks.

• Competitive risk: It arising from the competitors evolving strategies and improving capabilities can pose strategic risk to the organization.
• Regulatory risk: It arising from the change of government policies resulting in change in business scenario.
• Economic risk: It arising from the adverse changes in the economic environment affecting organization strategy.