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  • The Financial Encyclopedia
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Risk Management

  Risk Management   |   Terms
  • 2530
  • July 10, 2020
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Tangible Risk

A threat or opportunity that is by nature quantifiable or can be quantified using typical risk management tools and analysis. Examples include production risk, product risk, finance risk, and accounting risk. Production risk arises from a variety of causes such as property damage, environmental damage, supply chain problems, dematerialization of risk, etc. Causes for product risk may include error in design and manufacture, product recall, low customer loyalty, and so on.

The tangible risk is part of the total risk of a business entity.

This type of risk is also known as hard risk.


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