Product Liability Risk
This is the risk that the firm or organization is impacted or suffers loss due to problems, failures or adverse consequences from the purchase and use of the organization’s products or services. This is usually as a result of identified errors, mistakes or failures in the design, manufacture or sale/distribution of the product or services. The consequences will potentially be a product recall, provision of replacement products or services, litigation and/or the payment of compensation. This will often give risk to Litigation Risk.