Breaking Down The Types of Risks

There is considerable academic and technical content in the field of risk management, with niches such as banking risk or occupational health and safety almost being sciences in their own right.We at Dott Risk however wish to make risk management very practical and real for the average business owner or manager, who has neither the time nor the inclination to make a detailed study of risk management, but is rather looking for a simple and pragmatic approach and set of tools to help them identify, quantify and manage the risks facing their organisation.

We break risk into four primary categories, namely:

1. Financial Risk
2. Strategic Risk,
3. People (Human resources) risk,and
4. Operational risk (where other risks often converge)

We then have an additional six secondary categories of secondary risk, namely:

1. Governance, Regulatory and Legal risk
2. Reputation risk
3. Environmental and Physical risks
4. Crime
5. Technology (including IT), and
6. Socio-economic risks

These risk classifications are simply designed to give a framework to risk management. It is frankly more important to identify and quantify the underlying risks facing your business than to worry about the correct technical allocation.