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Organizational Risk in an Economic Downturn

BY Brett Tarr
July 28, 2009

Organizational risks are threats, negative effects or problems that can occur as a result of an event or an action within a company. During turbulent economic times, organizations need to be especially vigilant to minimize potential risks that could ultimately affect the bottom line or shareholder ROI.

Organizational risk can include many types of risk (e.g., investment risk, budgetary risk, program management risk, legal liability risk, safety risk, inventory risk, and the risk from information systems).

Managing organizational risk is not an exact science. It brings together the best collective judgments of the individuals responsible for the strategic planning and day-to-day operations of organizations to provide adequate security and risk mitigation.

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