Examples of common risks that organization should manage

List of Common Examples of Risks

There are various strategic, operational,  financial, systems and knowledge risks facing various organization. These risks if not well managed, are likely to hinder organization in achieving their strategic objectives.

Please be aware that this list does not represent a complete list of possible risk areas, nor will all of these risks be applicable to all organizations. The list has been created to stimulate discussion on risk, rather than as a comprehensive check list.

STRATEGIC RISKS

Including: Governance, Stakeholder Relationships, Reputation, Environment

     Changes in services provided

     Loss of customers to private sector companies

     Services/ goods not provided within budget

     Change in ability to supply services/ goods

     Change in public demand for services/ products

     Loss of customers to other state organization

     Political change

     Poor market knowledge

     Change in interest rates

     Undefined or unclear strategic vision

     Inaccurate forecasting

     Unethical business practices

     Incomplete or inaccurate resource planning

     Poor organizational design/ Inappropriate reporting lines

     Strategic plan not implemented

     Business Continuity Planning inadequate/ or not developed

     Stakeholders not identified

     Poor/ deteriorating stakeholder relationship

     Expectations of stakeholders not understood

     Poor community relationships

     Negative/ hostile/ inaccurate press coverage

     Ineffective communication strategy/ plans

     Joint ventures/ partnerships not managed

     Loss of customer loyalty/ revenue

     Failure to meet sustainability targets 

     Water shortages

     Fuel shortages

     Failure to assess and understand environmental impact of organizational activities

     Contamination of water supply

     Damage to/ development of protected sensitive natural habitats

     Breach of environmental protection/ sustainability legislation

     Sustainability costs making service provision uneconomical

     Air or water pollution

FINANCIAL RISKS

Including Capital Management, Budgeting, Revenue and Expenditure, Reporting 

     Incorrect valuation of capital assets

     Declining market value of assets

     Capital assets not maintained/ deterioration

     Equipment obsolescence

     Customer revenue/ collections targets not met

     Unauthorized and irregular expenditure

     Wasteful or unproductive expenditure

     Changes in funding allocations

     Over/ under spending budget allocations

     Inaccurate revenue forecasting

     Inaccurate expenditure forecasting

     Financial reporting requirements not understood

     Reporting deadlines not met

     Errors/ omissions in financial statements

     Reporting not in correct format

     Fraud

OPERATIONAL RISKS

Including Human Resources, Procurement, Legislative, Asset Management

     Absenteeism

     Inability to attract and retain staff/ Staff turnover

     Poor service provided by staff

     Strikes and workplace unrest

     Wrongful termination

     Uncompetitive remuneration

     Job roles/ accountabilities unclear

     Workplace injury: Burns, falls, food poisoning, car accident etc.

     Pandemic and Infectious Disease Outbreak

     Failure of/ No fire suppression system

     Sexual harassment/ violence

     Equipment obsolescence

     Failure to maintain/ repair assets

     Unauthorized use/ Misuse of fleet vehicles

     Failure to maintain assets/ equipment

     Theft

     Natural Disasters: Fire, Flooding, Bushfires

     Underinsurance/ Assets not insured

     Power failure

     Terrorist attack/ Bomb threat etc.

     Tender evaluation requirements not defined

     Overpayment for goods and services

     Failure to comply with procurement legislation/ processes

     Conflicts of interest in tender award process

     Failure/ closure of service provider

     Unethical service provider actions

     Goods/ services not meeting quality requirements

     Non-delivery of goods and services by supplier

     Breach of contract

     Legislative requirements not clear/ not understood

     Conflicting requirements of different legislation

     Actions taken exceeding mandated authority

     Disputed authority between multiple agencies/ departments

     Delays in finalizing legislation

     Changes in legislation

     Poor process design

     Poor process integration

     Project budget over-runs

     Failure of project

     Project scope not defined 

KNOWLEDGE AND SYSTEMS RISKS

Including Data, IT Security, Software, Hardware, Intellectual Property

     Inadequate system security/ Confidential information not adequately protected

     IT systems not integrated

     Network failure/ network unavailability

     Unauthorized system access/ IT security breach or failure

     IT system/ software obsolescence

     Ineffective Disaster Recovery Plan

     Poor choice of software/ IT solution/ IT solution does not support business requirements

     System not scalable/ cannot meet increased capacity requirements

     Loss of data/ information