Non-financial risk

Non-financial risks (NFR) are all of the risks which are not covered by traditional financial risk management.

[1] This negative definition resembles the initial definition of operational risk, and it depends on the bank or corporation whether or not they use the term operational risk synchronously with NFR.

Since 2019, the new term NFR became popular in the risk management sector[2] Non-financial risks include: All these risk types are closely related.

In the case of a data leak (which is a cyber risk incident), the reputation of the company as a whole might be at stake.

[4]

Venn Diagram of various non-financial risks. This is only one possible representation on how the different risk types overlap