Definition of Risk (2024)

Risk: The possibility that the occurrence of an event will adversely affect the achievement of the organization's objectives. At Stanford University, risks are categorized as follows:

• Strategic – an event that affects the high-level goals and vision of the University
• Healthcare – an event that could impact the delivery of healthcare activities
• Students – an event that could negatively impact current or potential students
• Research – an event that could encumber the University’s research mission
• Operational/Campus - an event that affects ongoing management processes
• Financial - an event that affects the financial well-being of the institution

We believe that every risk has a potential compliance or reputational aspect to it:

• Compliance - an event that affects the institution’s adherence to applicable laws and regulations or University policies and guidelines
• Reputational - an event that affects the image, standing or character of the organization