Strategic risk
Strategic risk is uncertainty affecting an organisation’s strategic choices or its ability to achieve strategic objectives. It can arise from changes in markets, technology, competition or assumptions underlying the chosen direction. It interacts with operational risk: failures in routine operations can eventually threaten the strategy, and strategic decisions alter operational exposure.
Worked example
A retailer commits to a physical-store expansion while customer demand shifts rapidly online. The risk concerns the chosen direction, while daily stock-handling failures are initially operational.
Common mistake
Treating strategic as simply a synonym for large or long-term, or assuming strategic and operational risks cannot influence each other.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Direct | September 2026–June 2027 |