Difference between revisions of "Risk Type"

From Open Risk Manual
 
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== Definition ==
 
== Definition ==
'''Risk Type'''  is a classification label that is used to [[Risk Identification | 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.
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'''Risk Type'''  is a classification ''label'' that is used to [[Risk Identification | identify]] and characterise the variety of risk phenomena to which an individual or organization is exposed. A [[Risk Taxonomy]] is constructed out of a collection of risk types organized along some particular classification scheme.
  
 
== Characterisation ==
 
== Characterisation ==
Given the wide scope of [[Risk]] there are many different dimensions that can be used to classify risks, indicatively:
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Given the wide scope of possible [[Risk | risks]] there are many different dimensions that can be used to classify risks, indicatively:
* Discrete [[Risk Event]] versus "continuous" risks, for example [[Market Risk]]
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* Discrete [[Risk Event | risk events]] such as those covered by insurance, versus "continuous" risks, for example exposure to fluctuating prices and [[Market Risk]]
 
* Whether there is a legal, contractual basis to the risk ([[Contractual Risks]])
 
* Whether there is a legal, contractual basis to the risk ([[Contractual Risks]])
* The underlying [[Risk Factor]]
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* The underlying [[Risk Factor | risk factors]] that create the risk (physical forces, economic behavior etc.)
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* The type of impact / loss generated (physical, emotional, reputational, monetary etc.)
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[[Category:Risk Management]]
 
[[Category:Risk Management]]

Latest revision as of 15:49, 8 November 2019

Definition

Risk Type is a classification label that is used to identify and characterise the variety of risk phenomena to which an individual or organization is exposed. A Risk Taxonomy is constructed out of a collection of risk types organized along some particular classification scheme.

Characterisation

Given the wide scope of possible risks there are many different dimensions that can be used to classify risks, indicatively:

  • Discrete risk events such as those covered by insurance, versus "continuous" risks, for example exposure to fluctuating prices and Market Risk
  • Whether there is a legal, contractual basis to the risk (Contractual Risks)
  • The underlying risk factors that create the risk (physical forces, economic behavior etc.)
  • The type of impact / loss generated (physical, emotional, reputational, monetary etc.)

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