Risk Categories and Subcategories
The world of risk funnels down into three major categories:
◆ Strategic/business risks
◆ Financial risks
◆ Operational risks
Each of these risk categories contains unique characteristics that require different measurement, analysis, and management techniques. Each category fans into a group of subcategories that help more specifically nail down what is happening within the business and where the true risks lie.
The Major Classes and Subclasses of Risk chart shows the three major classes of risk and the types of risk that derive from them.
When identifying risks, be sure to determine what category ...