How is 'catastrophic risk' best defined?

Catastrophic risk is best defined as risks that cause significant disruption to operations. This type of risk has the potential to impact an organization on a large scale, potentially leading to substantial financial loss, extensive operational halt, or major damage to assets and reputation. Catastrophic risks are characterized by their ability to affect a wide range of stakeholders and can result from events such as natural disasters, technological failures, or major accidents.

The other definitions offered do not align with the nature of catastrophic risks. Risks leading to minor inconveniences are more benign and manageable, lacking the severe impact associated with catastrophic events. Risks that impact only a small group do not have the widespread ramifications typical of catastrophic risks, which often affect the entire organization or even the broader community. Furthermore, risks that can be easily managed and controlled would not qualify as catastrophic since they lack the overwhelming and disruptive characteristics that define true catastrophic scenarios.