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Business Risk

What is Business Risk?

The potential for events or conditions to adversely affect an organization's ability to achieve its business objectives and maintain operations.

Risk Management

Each of these is named in at least one of the same controls as business risk. The number is how many controls name both.

What the standards actually require on business risk

Requirements naming business risk across 6 standards, quoted from the control text.

VASPs must conduct periodic business risk assessments addressing operational, financial, and reputational risks.

CRM-4 · Business Risk Assessment
PTES2 controls

Test objectives, success criteria, and threat scenarios must be agreed in advance so findings and the final report can be assessed against business risk rather than raw vulnerability counts.

PTES-PRE-3 · Goals and Success Criteria

Classify physical and logical assets by the business risk they carry, and record the classification.

CCM-DCS-05 · Assets Classification

Recommendation 10 (Customer Due Diligence / CDD): financial institutions should be required to undertake CDD measures: (a) identifying the customer + verifying that customer's identity using reliable + independent source documents + data + information;

FATF-R.10_11 · Customer Due Diligence + Record Keeping (FATF R.10 and R.11)
HKMA SPM1 control

HKMA SPM implementation roadmap + AI compliance + supervisory dialogue. ORGANIZATIONAL ROLES at AI: (a) BOARD + RISK COMMITTEE - SPM governance oversight + module-by-module compliance + sectoral risk integration + reporting;

HKMA-SPM-Implementation-AI-Compliance-SupervisoryDialogue · HKMA SPM Implementation Roadmap, AI Compliance Roles, Supervisory Dialogue and Sectoral Engagement

Questions people ask about business risk

What is Business Risk?
The potential for events or conditions to adversely affect an organization's ability to achieve its business objectives and maintain operations.
Why is Business Risk important for compliance?
Business Risk is a key concept in Risk Management. Understanding business risk helps organizations meet regulatory requirements, reduce risk, and demonstrate due diligence during audits. Our compliance platform maps 686 frameworks with 311K cross-framework control mappings.
Which compliance frameworks address Business Risk?
Business Risk appears in the requirement text of UAE Virtual Asset Regulatory Authority (VARA) Regulations, PTES, Cloud Security Alliance Cloud Controls Matrix (CCM) v4.0.1, FATF 40 Recommendations, HKMA SPM. Across these standards we have identified 7 controls that name it directly, each linked to the control text on the compliance platform.
Where can I learn more about Business Risk?
Explore our compliance framework pages to see how business risk applies across different standards and regulations. Our implementation guides provide step-by-step guidance, and the compliance platform offers AI-powered analysis of how this concept maps across 686 frameworks.

See how Business Risk applies across compliance frameworks

Our platform maps 686 frameworks with 311K cross-framework control mappings. Explore how this concept is addressed across standards.

Written and maintained by Gerard Blokdyk, The Art of Service.