Businesses undertake planning, but due to uncertain future outcomes, they are exposed to which type of risk?

Strategic risk involves threats to an organization's ability to achieve its long-term goals, stemming from poor strategy, flawed execution, or external factors like market shifts, technology, or competition, impacting fundamental business decisions rather than daily operations. Note - Strategic risk concerns big-picture, long-term threats to a company's overall goals (like market shifts or new tech), while business risk is often a subset, focusing more on day-to-day execution risks related to specific products, services, or operations that prevent achieving objectives, though business risks (like a failed product launch) can become strategic issues if they threaten the core model. The key difference is scope and impact: strategic risks affect the entire organization's vision and market position, while business risks are often operational or market-related but can cascade into strategic failure.