Difference between revisions of "Uninsurable risk"

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Reputation risk is a threat to the [[organization]]. It can occur in everyday operations related to the [[project]] and difficulties in the company's development plans. Loss of reputation affects [[competitiveness]], weakens the company's dynamism and reduces the value of developing investments.Reputational risk applies not only to individual organizations but it can affect the entire [[industry]]. Reputation risk is a threat to the good name or position of the company. Reputation risk may occur as a result of the actions of the company itself, employees or other entities related to the company. Companies [[need]] to be responsible and consciously managed to avoid or minimize the risk of losing reputation.<ref>Terry O’Callaghan (2007), 105-110</ref>
 
Reputation risk is a threat to the [[organization]]. It can occur in everyday operations related to the [[project]] and difficulties in the company's development plans. Loss of reputation affects [[competitiveness]], weakens the company's dynamism and reduces the value of developing investments.Reputational risk applies not only to individual organizations but it can affect the entire [[industry]]. Reputation risk is a threat to the good name or position of the company. Reputation risk may occur as a result of the actions of the company itself, employees or other entities related to the company. Companies [[need]] to be responsible and consciously managed to avoid or minimize the risk of losing reputation.<ref>Terry O’Callaghan (2007), 105-110</ref>
 
== Regulatory risk ==
 
== Regulatory risk ==
 
+
Regulatory risk is the risk of losses resulting from changes in laws and regulations. Organizations must stabilize investment prices to reduce anti-competitive [[behavior]]. The change of regulations may affect the [[market]], sector and security. Regulatory risk may first and foremost appear in the offer of services and products in which companies may get involved. It may result from events such as a change in rates that may encumber or that may hinder business operations. New laws and regulations can greatly impact the value of shares of the company. The company which is facing high compliance costs may see its stock [[price]] fall.
 
== Trade secret risk ==
 
== Trade secret risk ==
 
== Political risk ==
 
== Political risk ==

Revision as of 18:32, 28 November 2018

Uninsurable risk
Primary topic
Related topics
Methods and techniques

Uninsurable risk is a situation that is related to unknowable or unacceptable risk or is against the law. Such a risk can be very dangerous for insurance company, thus those companies try to avoid insuring uninsurable risk.

When uninsurable risk is related to an investment that is important for society or country, the government can give guarantees that are kind of insurance. That helps to make some large investments.

Law can forbid some types of insurance, e.g. for criminal penalties. Other uninsurable risks are:

  • risk to reputation
  • regulatory risk
  • trade secret risk
  • political risk
  • pandemic risk

Risk to reputation

Reputation risk is a threat to the organization. It can occur in everyday operations related to the project and difficulties in the company's development plans. Loss of reputation affects competitiveness, weakens the company's dynamism and reduces the value of developing investments.Reputational risk applies not only to individual organizations but it can affect the entire industry. Reputation risk is a threat to the good name or position of the company. Reputation risk may occur as a result of the actions of the company itself, employees or other entities related to the company. Companies need to be responsible and consciously managed to avoid or minimize the risk of losing reputation.[1]

Regulatory risk

Regulatory risk is the risk of losses resulting from changes in laws and regulations. Organizations must stabilize investment prices to reduce anti-competitive behavior. The change of regulations may affect the market, sector and security. Regulatory risk may first and foremost appear in the offer of services and products in which companies may get involved. It may result from events such as a change in rates that may encumber or that may hinder business operations. New laws and regulations can greatly impact the value of shares of the company. The company which is facing high compliance costs may see its stock price fall.

Trade secret risk

Political risk

Pandemic risk

References

Footnotes

  1. Terry O’Callaghan (2007), 105-110

Author: Weronika Góra