Political, legal, regulatory, compliance and employee malfeasance risk

Definition

10

Risk that is caused by changes in regulation that can affect your business

Regulatory risk

10

Risk caused by actions of employees

Employee malfeasance risk

10

Risk that is caused by political instablilty

Political risk

10

Risk that is caused non-compliance with laws and regulations

Compliance risk

10

Risk that is caused by legal action that will be brought against the business

Legal risk

Example

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Examples of compliance risk

Risk of being sued due to pollution and safety hazard (any logical answer)

10

Examples of legal risk

Risks of legal action for negligence/risk of legal action for compensation (any logical answer)

10

Example of political risk

Government revamping the existing policy or introducing new policy for the business

10

Examples of regulatory risk

Competition law/fair trade law/anti-monopoly regulations (any logical answer)

10

Example of employee malfeasance risk

Making verbal and physical threats of violence, bullying, sexual harassment, and stalking

Fill in the blank

10

Political risk is considered as __________ to the business

external risk

10

The organization might face risks of ________, risk of ________ or risk of____________.

negligence, compliance, being sued by third party

10

 _______ means doing wrong or committing an offence

Malfeasance

10

Measures to ensure compliance with ____________

Rules and regulation

10

Regulations might apply to businesses ______________.

 generally or to specific industry