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.

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Risk Awareness Jonathan Poland

Risk Awareness

Risk awareness refers to the extent to which people or organizations are aware of risks and the strategies in place…

Project Goals Jonathan Poland

Project Goals

Project goals refer to the desired business outcomes that a project aims to achieve. These goals are typically outlined in…

Product Demand Jonathan Poland

Product Demand

Product demand refers to the desire or need for a particular product or service in the market. It is a…

Conflicts of Interest Jonathan Poland

Conflicts of Interest

A conflict of interest exists when an individual or organization has incentives that contradict their responsibilities. This can occur when…

Experiment Cycle Time Jonathan Poland

Experiment Cycle Time

Experiment Cycle Time is a measure of how long it takes for an idea to go through the innovation process,…

Performance Goals Jonathan Poland

Performance Goals

Performance goals are targets or objectives that are set for an employee’s work, typically in collaboration with their manager. These…

Data Quality Jonathan Poland

Data Quality

Data quality refers to the accuracy, completeness, and reliability of information used for various purposes within an organization. Ensuring high…

Business Environment Jonathan Poland

Business Environment

The business environment refers to the external factors and conditions that can affect a company’s operations and performance. It includes…

Structural Capital Jonathan Poland

Structural Capital

Structural capital is one of the three primary components of intellectual capital, and consists of the supportive infrastructure, processes, and…

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Implementation Jonathan Poland


Implementation is the process of putting a plan or idea into action. In a business context, implementation refers to the…

Lobbying Jonathan Poland


Vertical integration is when a single company owns multiple levels or all of its supply chain.

Customer Need Examples Jonathan Poland

Customer Need Examples

Customer needs refer to the specific desires or requirements that a customer has for a product or service. These needs…

Strategic Planning Techniques Jonathan Poland

Strategic Planning Techniques

Strategic planning is the process of defining an organization’s direction and making decisions on allocating its resources to pursue this…

Acceptable Risk Jonathan Poland

Acceptable Risk

An acceptable risk is a level of risk that is deemed to be tolerable for an individual, organization, community, or…

Experiment Cycle Time Jonathan Poland

Experiment Cycle Time

Experiment Cycle Time is a measure of how long it takes for an idea to go through the innovation process,…

Advertising Strategies Jonathan Poland

Advertising Strategies

Advertising involves paying to disseminate a message or promote a product or service to a public audience through various media…

Brand Engagement Jonathan Poland

Brand Engagement

Brand engagement refers to the interaction between a customer and a brand, and can be used as a way to…

Niche Market Jonathan Poland

Niche Market

A niche market is a small and specialized target market that is characterized by unique needs, preferences, and perceptions. These…