The Financial & Legal Risks perspective encompasses a comprehensive assessment of events that may impact an organization's financial stability and legal standing. This perspective is critical for identifying, evaluating, and mitigating risks that could have significant financial repercussions and legal consequences.
Consumer Unrest
Event Type | Direct-level | Company-level |
Consumer boycott | Mid | Mid |
Consumer campaign | Low | Low |
Financial Stress
Event Type | Direct-level | Company-level |
Credit rating downgrade | High | High |
Delisting | Critical | Critical |
Insolvency | Critical | Critical |
Investment reduction | Mid | Mid |
Mass layoff | Critical | Critical |
Profit Decline | High | High |
Profit Warning | High | High |
Restructuring | High | High |
Short time work | Mid | Mid |
Site closure (permanent) | Mid | Mid |
Stock Price Decrease | Mid | Mid |
Wage Theft | Critical | Critical |
Governance Incident
Event Type | Direct-level | Company-level |
Accounting fraud | Mid | Mid |
Collusion | Mid | Mid |
Corporate investigation | High | High |
Corporate Wrongdoing | Critical | Critical |
Corruption | High | High |
Criminal Organization | Mid | Mid |
Fraud | Mid | Mid |
Illegal employment | Mid | Mid |
Insider trading | Mid | Mid |
Management Change | High | High |
Mismanagement | Mid | Mid |
Policy Change | Mid | Mid |
Tax evasion | Mid | Mid |
Theft | Mid | Mid |
Legal Stress
Event Type | Direct-level | Company-level |
Accounting fraud | Mid | Mid |
Acquittal | Mid | Mid |
Collusion | Mid | Mid |
Corporate investigation | High | High |
Corporate Liability | Mid | Mid |
Corruption | High | High |
Criminal Organization | Mid | Mid |
Customs Issue | Low | Low |
Force Majeure | Mid | Mid |
Fraud | Mid | Mid |
Illegal employment | Mid | Mid |
Insider trading | Mid | Mid |
IP Infringement | Mid | Mid |
Lawsuit | High | High |
Legal Procedure | High | High |
Regulatory shutdown | High | High |
Sanctions | Mid | Mid |
Sentencing | Mid | Mid |
Tax evasion | Mid | Mid |
Theft | Mid | Mid |
Operational Stress
Event Type | Direct-level | Company-level |
Site closure | Mid | Mid |
Site closure (permanent) | Mid | Mid |
Supplier Issue | Mid | Mid |
Product Incident
Event Type | Direct-level | Company-level |
Product recall | Mid | Mid |