Unknown Risk

Unknown Risk

Unknown Risk Jonathan Poland

An unknown risk is a potential loss that is not recognized or identified. In the context of risk management, unknown risks are those that have not been identified and managed as part of the risk management process. These risks may be difficult to predict or anticipate, and can have significant impacts on an organization if they occur.

Unknown risks can be particularly challenging for risk management, as they are not accounted for in risk assessments or management strategies. This can make it difficult for organizations to prepare for or respond to these risks effectively. To address unknown risks, it is important for organizations to have robust risk management processes in place to identify and assess potential risks, as well as to have contingency plans in place to mitigate their impacts.

Unknown Unknowns

An unknown unknown is the state of being unaware that a particular type of knowledge exists. For example, an investor who is unaware of the concept of liquidity may purchase the stock of a firm with a high debt load, negative cash flow from operations, rising cost of capital and other issues that make bankruptcy possible. Such an investor is exposed to a firm’s liquidity risk without knowing that such a concept exists.

Black Swans

Black swans are a class of high impact, low probability events that are difficult to predict. In some cases, low probability risks are excluded from risk management because they seem so improbable. However, events that are high impact may be a significant risk even if their probability is extremely low.

Risk Identification Shortfall

Risks may simply be missed by the process of risk identification. For this reason it is common to involve all stakeholders in risk identification and to bring in subject matter experts as required. For example, an information security expert may be required to identify risks to an information technology project.

Learn More
Team Manager Jonathan Poland

Team Manager

A team manager is responsible for directing and controlling an organizational unit. This leadership role involves authority and accountability for…

Supplier Risk Jonathan Poland

Supplier Risk

Supplier risk refers to the risk that a supplier will not fulfill their commitments to an organization, which could result…

Inferior Good Jonathan Poland

Inferior Good

An inferior good is a type of consumer good for which the demand decreases as the consumer’s income increases. In…

What is Globalization? Jonathan Poland

What is Globalization?

Globalization refers to the increasing interconnectedness and interdependence of the world’s economies, cultures, and populations, brought about by advances in…

Brand Vision Jonathan Poland

Brand Vision

A brand vision is a statement that paints a picture of the future your brand. Brand vision is the long-term…

Technology 101 Jonathan Poland

Technology 101

Technology is an important component of every business, constantly reshaping entire industries. Keeping pace with new and emerging technology can…

Generic Brand Jonathan Poland

Generic Brand

A generic brand is a type of brand that does not have a distinct or unique image. Instead, it is…

Demand Generation Jonathan Poland

Demand Generation

Demand generation is any marketing or sales activity designed to create recognition, awareness and interest in a firm’s brand and…

What is the Iterative Process? Jonathan Poland

What is the Iterative Process?

An iterative process is a method of working through a problem or project by repeating a series of steps, each…

Content Database

IT Architecture Jonathan Poland

IT Architecture

An IT architecture is a framework that describes the components of an information technology (IT) system, how they work together,…

Organizational Culture Jonathan Poland

Organizational Culture

Organizational culture refers to the shared beliefs, values, customs, behaviors, and symbols that characterize an organization and differentiate it from…

Situational Awareness Jonathan Poland

Situational Awareness

Situational awareness (SA) is the ability to understand and effectively respond to a situation by being aware of what is…

Analysis Paralysis Jonathan Poland

Analysis Paralysis

Analysis paralysis, also known as “paralysis by analysis,” is a phenomenon that occurs when individuals or groups become so focused…

BATNA Jonathan Poland

BATNA

BATNA, or best alternative to a negotiated agreement, is the course of action that a party in a negotiation would…

Government Contract Renewals 150 150 Jonathan Poland

Government Contract Renewals

Renewing a government contract typically involves a series of steps to assess the contractor’s performance, determine whether renewal is in…

Onboarding Jonathan Poland

Onboarding

Onboarding is the process of introducing a new employee to an organization and providing them with the necessary tools, resources,…

Customer Advocacy Jonathan Poland

Customer Advocacy

Customer advocacy is a customer service strategy that involves employees representing and fighting for the interests of customers, rather than…

Cycle Time Jonathan Poland

Cycle Time

Cycle time is a measure of the time it takes to complete a single cycle of a process or task.…