Which type of risk factors can be changed over time?

Dynamic risks are characterized by their ability to change over time in response to various factors, such as environmental conditions, organizational changes, or market dynamics. These risks can emerge and evolve as the situation or circumstance surrounding them shifts, making them different from static risks, which remain constant regardless of changes in the environment.

Dynamic risks might include aspects such as market volatility, technological advancements, or shifts in regulatory environments. Because they can transform based on new developments or actions taken, dynamic risks require ongoing assessment and management to ensure that organizations can effectively mitigate any potential negative impacts. This adaptability is crucial for supervisors and decision-makers who must respond to these changing scenarios in a timely manner to protect their teams and resources.

In contrast, static risks, which are unchanging, historical risks that are based on past data, and inherent risks that are naturally associated with specific activities or sectors do not have the same level of adaptability or changeability. Recognizing and focusing on dynamic risks allows first-line supervisors and organizations to proactively plan and respond to the evolving landscape of risks they face.