Strategic risks are potential events or conditions that can negatively impact an organization's ability to achieve its long-term goals. These risks often arise from changes in the market, competition, regulations, or technology. For example, a company like Blockbuster faced strategic risks when it failed to adapt to the rise of streaming services. Organizations must identify and manage strategic risks to ensure sustainable growth. This involves analyzing internal and external factors that could affect their strategy. By doing so, companies can make informed decisions and allocate resources effectively to mitigate potential threats to their objectives.