![]() These events range from customer service failures to outages, breaches or other types of cybersecurity issues. Organizations incur brand damage when the image of the brand is undermined or made obsolete by events. There are many different types of risk exposure, but the most common include the following: Risk probability examples software#Examples of speculative risk might be the choice of a software platform that is later susceptible to critical vulnerabilities or a choice to keep all backups on-site, which are later infected by ransomware. Speculative risk is a type of risk that occurs based on actions an organization takes - and their subsequent consequences. Most organizations are exposed to at least some pure risks, and preemptive controls and processes can be created that minimize loss, to some degree, in these pure risk circumstances. Pure risk exposure is a risk that cannot be wholly foreseen or controlled, such as a natural disaster or global pandemic that impacts an organization's workforce. ![]() There are two primary categories of risk exposure: pure risk and speculative risk. What are the different categories and types of risk exposure? The level of risk an organization is prepared to accept to achieve its goals is called its risk appetite. The objective of the risk exposure calculation is to help determine the overall level of risk the organization can tolerate based on the benefits and costs involved. Losses may include legal liability, property loss or damage, unexpected employee turnover, changes in demand, payment of ransom to cybercriminals, or other activity that could result in either a profit or a loss for the business. Risk exposure in business is often used to rank the probability of different types of losses and to determine which losses are acceptable or unacceptable. The level of exposure is usually calculated by multiplying the probability of a risk incident occurring by the amount of its potential losses. ![]() Risk exposure is the quantified potential loss from business activities currently underway or planned. ![]()
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