Hazard Risk

Risks associated with accidental losses, such as those arising from natural disasters, accidents, fire, property damage, or liability claims. Hazard risks traditionally formed the core focus of insurance-based risk management before the emergence of more comprehensive approaches. Within RBPM, hazard risks are typically managed through a combination of preventive controls, contingency planning, and risk transfer mechanisms like insurance. While less directly connected to strategy than other risk types, major hazard events can significantly disrupt strategic execution if not properly managed.