Performance Risk

Performance risk refers to the possibility that a product, service, or investment will not perform as expected. This could mean not achieving the desired results, falling short of promised features, or failing to meet quality standards. In business, performance risk might involve a company not delivering goods on time or investors not receiving anticipated returns. It's important to evaluate performance risk because it can affect decision-making and overall success, whether in financial investments, project management, or product development. Understanding and managing this risk helps mitigate potential losses and enhances confidence in outcomes.