Do you often hear your Insurance Broker or Risk Advisor talking about your commercial risks and don’t know exactly how they apply to your organisation? As a solutions provider to the Medical and Healthcare sector, we’ve put together the below, transparent Risk Glossary, so that you can make informed decisions when it comes to your business.
Corporate Governance – The risk that employees won’t act in the best interests of owners or the community.
Ethics – Company procedures and internal ethics are breached.
Business Strategies – The risk that your overall business strategies and plans will not succeed (e.g. will fail to meet projected growth and revenue targets).
Competitors – Loss of business to the competition.
Innovation – The risk that the competition or complacency will out innovate you.
Intellectual Property – Risk related to intellectual property (e.g. your IP leaks to competitors).
Merger & Acquisitions – The risks related to purchase and integration of an additional business.
Reputation – The risk of damage to your corporate or business image reducing or eroding trust within the community or business sector.
Change Management – The risks associated with managing change.
Disaster/Catastrophes – Acts of nature, war and terrorism or events resulting in significant property damage, closure or prolonged loss of income..
Profits – risk that profits will reduce.
Capital Adequacy – risk that you won’t be able to fund your business.
Interest Rates – The risk that interest rates will rise (finance/loans).
Currency – The risk of a change in exchange rates increasing the cost of overseas goods.
Inflation – The risk of price increases due to accelerated/unplanned inflation.
Investments – The risk of a change in value of investments.
Liquidity – will you be able to sell an asset quickly, for a fair price if needed?
Economic – The risk that the economy will impact your business.
Fraud – The risk of fraud losses.
Accounting – The risk of accounting errors.
Outsourcing – the risk an outsourced activity /service results in a breach of contract causing a significant financial impact.
Tax – The risk that tax legislation will change or an audit will reassess taxes of previous years.
Political – The risk associated with political change.
MARKETING & SALES RISKS
Revenue Shortfall – The risk that revenue will not meet required or planned targets.
Demand Risk – Lower than expected demand for your services.
Market Competition – The risk that competitors will impact on your business or market share. eg: better services or cheaper prices
Relationship – The risk of damaged relationships with clients/patients/ community.
Brand Value – The risk of a decline in your brand value.
Publicity – The risk of bad publicity
COMPLIANCE & LEGAL RISKS
Compliance – Risk that you’ll fail to comply with laws and regulations.
Mandatory Reporting – The risk that you will fail to meet regulatory reporting requirements.
Liability – The risk of legal action from a third party.
Infrastructure – Risks related to infrastructure (e.g. electricity outage).
Equipment Risk – Risk of equipment failure.
Product/Services Liability – The risk that you will incur legal liability related to your products and services.
Procurement – Risks related to procuring goods and services.
Technological – The risk that current technology assets will become obsolete
Work Health and Safety – The risk of accidents or poor environment impacts on employees safety or health.
Employer Reputation – a bad reputation as an employer poses difficulties recruiting and keeping staff.
Employer Liability – The risk that you’ll be sued for employment related practices or incidents.
Employment Law Compliance – The risk of non-compliance with employment related laws and regulations.
Key Persons – The risk of losing key staff members.
Hiring – The risk that you will hire the wrong candidate.
Privacy – The risk that personal information about employees is breached.
Infrastructure – The risk that your IT infrastructure will fail to meet business needs.
Data Quality – The risk of poor quality data.
Technology Quality – The risk of software and hardware failing or becoming obsolete.
Platform/Software – The risk of choosing a technology platform or software that’s not fit for its purpose.
Security Risk – The risk of information /data security incidents.
Questions? Let us know!
The information provided here is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Please refer to the Product Disclosure Statement for specific information regarding the insurance cover.