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Risk Management

  Risk Management   |   Terms
  • 433
  • May 13, 2023
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Non-Financial Risk

A type of risk that is not financial in nature. It constitutes all types of risk other than financial risk such as operational risk, reputational risk, and strategic risk. Non-financial risks do not involve a financial decision by an entity, and for which there is only a downside (rather than movement in either direction).

Other examples of non-financial risks include settlement risk, model risk, legal risk, third party risk, cyber risk, conduct risk, regulatory risk, compliance risk, information security risk, sourcing risk, business continuity risk, and so on.


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