Strategic risk refers to the potential for losses or negative outcomes that can arise from a company's strategic decisions, plans, or failure to adapt to changes in the market or competitive landscape. This type of risk can stem from poor business decisions, inadequate response to industry trends, ineffective resource allocation, or failure to innovate. Strategic risk can impact an organization’s ability to achieve its long-term goals and maintain its market position. Effective management involves thorough market analysis, scenario planning, continuous monitoring of industry developments, and fostering a flexible organizational culture that can adapt to change.

Basel scope:

• Pillar 2

Capital requirements:

Mitigated by Capital

Related Links:

•       Basel Framework