The risk of embarrassment or loss of respect by people whose opinion is valued. From a personal perspective the relevant opinion holders may be friends, family, or business colleagues. In such cases the risk may be referred to as social risk. From a corporate perspective the opinion holders may be clients, suppliers, regulators, or other market players.
Asking someone out on a date. There is a risk that one’s feelings are not shared by the other person, and therefore a potential for embarrassment.
The answer is ‘no’, The suitor is embarrassed and it takes him or her several years to work up the courage to ask someone else out.
The answer is ‘yes’, and after dating for a few months, the relationship leads to marriage and sailing off into the sunset together, happily ever after.
The possibility of negative publicity that erodes a brand and leads to loss of credibility and trust by its target audience.