# Four nonfinancial corporate risks

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**There are nine main corporate risks.**

The four most important risks are nonfinancial

![The four nonfinancial risks are:](https://i.imgur.com/MMVTAIY.png)

1. Operational
2. Strategic
3. Reputation
4. Legal and regulatory

## Operational

Tied to the day-to-day. 

- Anti-virus software lacking
- Bad management
- Bad financial reporting
- People just doing their jobs wrong

## Strategic

Companies don't invest when they should

- Taxis losing market position to ride-share companies
- Market disruption
- Blockbuster ignored online streaming
- eCommerce destroying bricks and mortar
- New Coke and Crystal Pepsi are the converse
- WiFi on airplanes before phones and tablets

## Reputation

Reputation takes a long time to build and can vanish overnight

- Product recall
- Unethical leader being caught fiddling the books
- Frontline worker doing something horrible but public

## Legal and regulatory

The kinds of risks that come from Government and regulatory institutions

- Subsidies
- Rules and red tape
- Regulatory challenges
- Main reason for lobbyists