In risk management, what type of risk is defined as issues that can be avoided?

In risk management, the term for risks that can be avoided is classified as preventable risks. These risks are typically associated with internal operations and processes that can be controlled and managed effectively to circumvent potential issues or losses. By identifying and mitigating preventable risks, organizations can enhance their operational efficiency and safeguard against negative outcomes, ensuring a more stable and predictable environment.

Preventable risks are distinct from other types of risks, such as strategic risks, which relate to the overall direction and long-term goals of the organization; external risks, which arise from outside the organization and can include factors like market fluctuations or regulatory changes; and operational risks, which involve day-to-day business activities but may not always be entirely avoidable since some operational risks stem from unavoidable external factors or human error.