Which risk category is focused on long-term organizational goals and potentials?

The focus on long-term organizational goals and potentials is central to strategic risk. This category involves risks that could impact the organization's overall strategy, objectives, and ability to achieve its long-term plans. Strategic risk encompasses external factors like market dynamics, competitive landscape, and changes in consumer behavior, as well as internal factors such as organizational capabilities and governance.

Understanding strategic risk is crucial for organizations as it helps in aligning resources and efforts to ensure the organization can navigate future challenges while seizing opportunities. When assessing strategic risk, companies evaluate how well their strategies position them to achieve their mission and vision given the long-term context and objectives they aim to accomplish. This awareness enables organizations to make informed decisions that directly support their long-term success and viability in the marketplace.