A Risk Taxonomy is the hierarchical categorization of risk types into a tree structure, whereby risks higher in the hierarchy are decomposed into more specific (granular) manifestations.
There is no over-arching risk taxonomy that applies consistently to the entire financial sector, let alone more general business / organizational models. There are a number of separate taxonomies implicit or explicit in the extant regulatory frameworks for financial institutions:
The Open Risk Taxonomy is an 'open source risk classification framework developed by Open Risk and used also within the Open Risk Manual. The primary objectives of this taxonomy are: