# Governance Risk

**IRI:** https://folio.openlegalstandard.org/RBLOT3utnNtA6pYPhY1sHFH

## Labels

**Alternative Labels:**

- Strategic Direction Risk

## Definition

Governance Risk refers to the potential for negative consequences arising from an organization's ineffective or inadequate leadership, decision-making processes, and oversight structures. This can result from poor corporate governance practices, lack of transparency, or weak accountability mechanisms, ultimately leading to reputational damage, legal liabilities, and decreased stakeholder trust, which can impact the organization's performance and sustainability.

## Sub Class Of

- https://folio.openlegalstandard.org/RxTxaN981tLTsN82qPBcp

**Is Defined By:** https://www.canada.ca/en/treasury-board-secretariat/corporate/risk-management/taxonomies.html

## See Also

- https://folio.openlegalstandard.org/RB7pLfw7zqXtd20kKg7EcOA
- https://folio.openlegalstandard.org/RBYHspF2cClL6YzpLgQJNTG

**Deprecated:** False