Risk Type is a classification label that is used to identify and characterise the variety of risk phenomena to which an organization is exposed. A Risk Taxonomy is constructed out of a collection of risk types organized along some particular classification scheme.
Given the wide scope of Risk 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)
- The underlying Risk Factor