Revenue Risk

The risk of future revenues being materially lower than that planned. This is a large risk category and there are numerous drivers of revenue risk, including one or more of the following:

 

• A decline in general economic activity;
• A decline in the competitiveness or attractiveness of the organization’s products or services;
• A reduction in the price or margin the organization is able to receive for its products or services;
• Changes in the usage patterns for the firm’s products or services for economic, social or industry reasons;
• A general loss of market share to competing products or services;

Other risk categories than can give rise to Revenue Risk can include Country Risk, Currency Risk, Key Contract Risk, Debtor Default Risk and Product Obsolescence Risk.