strategy (noun, strat-e-gy, \ ˈstrætɪdʒi \) risk (noun, risk, \ rɪsk \)
Definition: is a chance of a financial loss that can result from an ineffective or poorly-implemented strategy. This risk exists in all strategies and doesn’t inherently mean that a strategy has been chosen poorly. The level of such a risk for a specific operation can be estimated by using strategic planning that’s focused on implementing those strategies that present a satisfying “risk to potential benefit” ratio. If the risk level for a strategy is determined to be dangerously high, it’s generally recommended for a business to change it.
In a Sentence:
- Since introducing a new product line so soon after the last media scandal would be a huge strategy risk, we’ve decided to postpone the release until next year.
- Uber suffered severe losses after being unable to account the strategy risk of broadening its services to small towns.
- The strategy risk would be much lower if you thought about the customer’s demands before you implemented your delivery system.
Synonyms and related words: risk management, comparative risk, controllable risk, standard risk
