Risk Type is a classification tool used to allocate (characterise) the variety of risk phenomena to which an organization is exposed.
In turn a Risk Taxonomy is constructed out of a collection of risk types
Given the wide scope there are many different dimensions that can be used to classify risks, indicatively
- Discrete Risk Event versus "continuous" risks, for example Market Risk
- Whether there is a legal, contractual basis to the risk (Contractual Risks) or not