Circular Economy Risk encompasses both transition risks from shifting to circular models—reverse logistics complexity, technology readiness, consumer acceptance—and competitive risks from failing to adapt while others succeed. Organizations face stranded asset risk in linear production facilities, regulatory pressure for extended producer responsibility, and market share loss to circular competitors. Assessment includes analyzing current linear dependencies, circular capability gaps, and stakeholder expectations. A consumer electronics manufacturer identified risks in its linear model including upcoming EU right-to-repair regulations, growing consumer preference for refurbished devices, and competitor take-back programs capturing customer loyalty, prompting investment in modular design and certified refurbishment operations.