New Markets Risk

This is the risk that the firm or organization is impacted or suffers loss due its inability to successfully enter new markets. This can be new lines of business or industries or new geographic areas (such as another country). This arises due to difficulties the organization may encounter in undertaking its activities as a result of lack of knowledge of the particular market or country, insufficient resources to operate in the new markets or a general inability of the organization to compete with established market participants.