Non-Financial Risk: Examples

Non-financial risk is a type of risk that is not financial in nature. It constitutes all types of risk other than financial 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).

The main examples of non-financial risks include:

• Operational risk.
• Reputational risk.
• Strategic risk.
• 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.