Positive Risk vs. Negative Risk in Enterprise Risk Management
                     Positive Risk 
vs. Negative 
Risk in 
Enterprise 
Risk 
Management
Enterprise risk management is an essential 
element of the strategic management of any 
organization and should be included in the 
ongoing activities of the business. It is the 
process of identifying and addressing any kind of 
event that represent risks to the achievement of 
objectives, or to opportunities to gain a 
competitive advantage in the market. 
Enterprise risk management is the assessment of 
 significant risks and the implementation of suitable risk responses. Risk responses include 
acceptance or tolerance of risk; avoidance or 
termination of risk; risk transfer or sharing via 
insurance, a joint venture, or another 
arrangement; and reduction or mitigation of risk 
through prevention activities. 
Enterprise risk management comprises positive 
and negative risks that are two sides of the same 
coin, despite having very different consequences. 
It may seem difficult to assess and monitor 
positive risks since they only help the organization 
and they provide a unique approach to risk 
 analysis and the organization’s risk exposure. When a positive risk materializes indirectly 
represents a failure in risk management 
processes, which either failed to identify a human 
error or were not sufficiently accurate in their 
assessments.
 
During the project, some events happen that can 
reduce the total cost of production. Also, 
Project miscalculation resulted in higher than necessary 
budget figures that could later be reduced. So it 
Manageme falls under the category of positive risk.
The absence of action plans to deal with budget 
nt overspending can create a negative risk for the 
company. The allocation of resources to complete 
a project is always a messy task; meanwhile, 
project interruptions or delays can be 
exponentially more costly than the original 
budget overrun.
When the actual useful life of an asset exceeds 
Assets and the estimated useful life, that is a positive 
development.When a particular tool, asset, or 
Investment infrastructure fails to serve the prescribed goal 
and gets degraded earlier than expected, that 
s can result in a partial or total stoppage of a production line 
Organizations investing in technology and tools 
to enhance functionality in order to get better 
efficiencies, mitigate negative risks, and improve 
communication. These changes can directly 
benefit companies and open up capabilities to 
increase productivity.
Technology There is a wide variety of negative risks in the technology sector that can interfere with the 
achievement of the company’s objectives and 
hinder its growth. It is really difficult to allocate 
them until they occur and cause damage of all 
sorts.
As a company develops a new product or 
service, it assesses different factors, it is easier 
to perceive the relationship between positive risk 
and opportunity compared to other areas. 
A new product or service always requires some 
time to come into the light for the customers. It 
is always possible that it will not be attractive to 
customers and consequently fails. Therefore, 
regardless of the proposal or the investment in 
Development market research, there are numerous risks 
associated with it.
Fncyber provides 
Integrated IT Risk Management Service, 
with its hybrid approach, utilizes both top-down 
and bottom-up frameworks to understand how 
Cybersecurity Risk is perceived in all 
organizational layers. They have an 
understanding of how risk and capabilities travel 
across the Enterprise.