Hidden Liabilities Risk
All Financial Risks
The risk of material and unexpected financial liabilities or losses arising. This can be due to a variety of factors including, but not limited to:
- Material provisions for such things as future employee, product or environmental liabilities or other such claims either not previously identified or accounted for, inadequately provided for, or incorrectly calculated;
- Abnormal trading losses or liabilities arising through mismanagement, negligence, fraud or employee misconduct; or
- Liabilities previously attributable to a third party but due to a change in circumstances are now required to be met by the organization.