"Non-financial risks do not have direct and immediate impact on business, but the consequences are very serious and later do have significant financial impact as well if not controlled at the initial stage." List the non

The various non-financial risk faced in a business may be listed as follows: Business/Industry & Services Risk- Business risks implies uncertainty in profits or danger of loss and the events that could pose a risk due to some unforeseen events in future, which causes business to fail. Business risk refers to the possibility of inadequate profits or even losses due to uncertainties e.g., changes in tastes, preferences of consumers, strikes, increased competition, change in government policy, obsolescence etc. Every business organization contains various risk elements while doing the business. Such type of risk may also arise due to business dynamics, competition risks affecting tariff prices, customer relation risk etc. Strategic Risk - Business plans which have not been developed properly and comprehensively since inception may lead to strategic risk. For example, strategic risk might arise from making poor business decisions, from the substandard execution of decisions, from inadequate resource allocation, or from a failure to respond well to changes in the business environment. Compliance Risk - This risk arises on account of non-compliance or breaches of laws/ regulations which the entity is supposed to adhere. It may result in deterioration of reputation in public eye, penalty and penal provisions. Fraud Risk - Fraud is perpetrated through the abuse of systems, controls, procedures and working practices. It may be perpetrated by an outsider or insider. Fraud may not be usually detected immediately and thus the detection should be planned for on a proactive basis rather than on a reactive basis. Reputation Risk - This type of risk arises from the negative public opinion. Such type of risk may arise from for example from the failure to assess and control compliance risk and can result in harm to existing or potential business relationships. Transaction Risk- Transaction risk arises due to the failure or inadequacy of internal system, information channels, employees integrity or operating processes. Disaster Risk - On account of natural calamities like floods, fire, earthquake, man-made risks due to extensive exploitation of land for mines activity, land escalation, risk of failure of disaster management plans formulated by the company etc. Regulatory Risk - On account of change in Government policies and perceptions. Especially this type of risks is associated with Food and beverages and Pharmaceuticals industries. Technology Risk - Failure of system caused due to tampering of data access to critical information, non availability of data and lack of controls.