strategic risk

Strategic risk refers to the potential for an organization to face losses or challenges due to poor decision-making, changes in the market, or the failure to adapt to new circumstances. It involves risks that can arise from external factors like economic shifts, competition, or regulatory changes, as well as internal issues like ineffective leadership or flawed strategies. Essentially, strategic risk highlights the dangers that come from the choices a company makes, which could impact its long-term goals and success. Effective management of this risk is crucial for sustaining growth and competitiveness.