Should Financial and Non-Financial Risks Be Separated?
It depends on the organization’s risk management approach and objectives. Some organizations prefer to categorize risks as financial or non-financial, while others prefer to assess and manage risks based on their potential impact on the organization’s overall objectives, regardless of whether they are financial or non-financial.
Separating financial and non-financial risks may make it easier to identify and evaluate specific types of risks, but it may also result in a fragmented approach to risk management that does not consider the interrelationships between different types of risks. Ultimately, the most effective approach will depend on the organization’s specific risk profile and objectives.