Exposure

Exposure in risk management is a term that refers to the potential danger that may or may not occur. This is a type of risk. A given risk situation does not present itself expenses for a company, but the protection against exposure can generate them (e.g. insurance or additional investment). If the risk is not mastered, it can result in failure. An important part of risk management is to prepare for future risks.

We define:

• Degrees of exposure according to the level of exposure
  • First, Second and Third Degree

• Categories of exposure

  • Unintentional damage - for example, different disorders and the failure of transportation, communication, information, security and other systems
  • Failure of equipment - an example is the failure to comply with various regulations, procedures and laws
  • Intentional damage - for example theft, arson, tax, accounting and insurance fraud, cyber attacks, terrorism
  • Spontaneous (natural) disaster - for example, floods, tornadoes, landslides, storms, snow storms