108 Types of Risk John Spacey, updated on
Risk is the potential for future losses. This is the result of the uncertainty that inherently surrounds all decisions, strategies, actions and inaction. Risks include business risks, personal risks and other types of risk such as risks to a society. The following are common examples of risks.
Financial RisksThe potential for losses of wealth or future income. This includes economic risks that impact entire economies and money-related risks facing businesses, households, individuals, projects and investments.Business RisksThe potential for losses and shortfalls related to a business. Business risks include market, competitive and internal risks associated with customer, the competition and the internal performance of the business.Operational RiskRisks related to the core processes of an organization. This is a type of business risk that relates to day-to-day operations as opposed to overall strategy. Operational risk includes major subcategories such as IT risk, procurement risk and HR risk.Project RiskThe risk that a project will fail to meet its objectives, budget and schedule. Project risk can result from issues with requirements, change control, design, performance, resources and a changing environment with many dependencies. In many cases, a project delivers much value but is late and overbudget. It is also possible for a project to have business, design and quality problems such that it fails to deliver any value whatsoever.Personal RiskRisks facing an individual, family or household. Personal risks include areas such as health, safety, security, finances, property, career and other quality of life issues such as family stability. These include calculated risks that you take on purpose in hopes of gains and pure risks that are attached to things you do in life such as the fire risk associated with homeownership.Other RisksAddition types of risk beyond the risks above. These are all general risks that can apply to a nation, organization, household or individual. For example, the risk of political instability that could impact everyone in an entire nation.Residual risk is the risk that remains after you treat risk.Secondary risks are the additional risks that you create when you avoid, mitigate or transfer risks. In other words, managing risk typically creates new risks.Unknown risks are risks that you are not aware exist. Next read: Database of Risk TypesMore about risk:
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