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Risk Management




Intangible Risk


A threat or opportunity that is by nature not quantifiable or cannot be quantified using typical risk management tools and analysis. It mainly includes leadership risk and behavior risk. Causes of intangible risk are shortsightedness as to product life cycle (cradle to grave product type), managerial incompetence, ivory tower mind-set and arrogance on the part of management, balance sheet fraud, moral hazard, inability to integrate management, mismanagement of crisis and reputation risks, mismanagement of value conflict, poor public relations, ineffective corporate governance, and so on.

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

This type of risk is also known as soft risk.



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Risk management is a collection of tools, techniques and regimes that are used by businesses to deal with uncertainty. This involves planning and ...
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