Sequence 03
Module 10

Impact Risk

Module overview

What if the expected positive impacts don’t occur? What if unexpected negative impacts do?

This module focuses on Impact Risk. Like its financial counterpart, Impact Risk assesses the likelihood that an enterprise’s impact performance will diverge from expectations. The Impact Management Project, in collaboration with Social Value International, identified nine types of Impact Risk for investors and enterprises to consider.

As an introduction to the concept of Impact Risk, this module focuses on the risk types identified by the IMP and Social Value International. See the ‘Additional resources’ section below for some of the latest developments in this field.

Key Concepts - Nine Types of Impact Risk, Likelihood vs. Consequences of Impact Risk

Depending on an enterprise’s context and strategy, different types of impact risk may be more or less likely to occur, and may be more or less consequential. Assessing both the likelihood and consequences of different types of Impact Risk can help investors decide which to evaluate in their impact rating.

Building an Impact Rating - Impact Risk

Compared to financial risk management, impact risk management is a nascent domain of practice. We’ll explore one way that investors can assess and integrate the likelihood that an enterprise’s impact will differ from expectations into investment decision-making.


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