What is an emerging risk?

An emerging risk is characterized as a risk that has not been fully assessed. This type of risk often arises from new developments or unforeseen changes in the environment, technology, or regulations that could impact organizations in various ways. Because emerging risks lack comprehensive evaluation, they can be more challenging to predict and manage. Organizations need to be proactive in identifying these risks as they can evolve quickly and potentially lead to significant consequences if not addressed.

The focus on the lack of complete assessment of these risks means that companies must remain vigilant and adaptable, employing flexible strategies to monitor and mitigate potential impacts as more information becomes available.