Strategic Risk

1. Strategic risk includes the risk of choosing inappropriate technology. For example, an organization may choose a Web?based program to share data between remote offices in different cities. If one of the offices does not have a high?speed internet connection and cannot enter data at the same speed as the other offices, this problem could lead to the generation of reports thought to be up?to-date but in reality missing data from the office with the slow internet connection. See also financial risk and information risk and operating risk. The possible impact on earnings or capital arising from adverse business decisions, improper implementation of decisions, or lack of responsiveness to industry changes.