What are 'emerging risks'?

Emerging risks refer to new and evolving threats that have not yet been fully realized or understood within an organization. These risks may come from various sources, such as technological advancements, regulatory changes, shifts in market dynamics, or developing trends that could impact business operations. While these risks might not be fully tangible or documented, their potential to affect the organization necessitates proactive assessment and management.

Identifying emerging risks is crucial because they can significantly influence an organization's strategy, operations, and overall risk profile. By recognizing and responding to these risks early on, organizations can better position themselves to mitigate potential impacts and leverage opportunities for growth. It is important to differentiate these risks from established ones, as emerging risks often involve greater uncertainty and require ongoing monitoring and reassessment as new information becomes available.