From Open Risk Manual
Contents
- 1 Definition
- 2 Characterization
- 3 Usage
- 3.1 Risk Taxonomies
- 3.2 Risk Ontologies
Definition
Risk Type is a classification label that is used to identify and characterize the variety of Risk phenomena to which an individual or organization is exposed.
Characterization
Given the wide scope of possible risks there are many different dimensions that can be used to classify risks, indicatively:
- The type of impact or loss generated (physical, emotional, reputational, monetary etc.)
- The underlying risk factors that create the risk (physical forces, biological phenomena, the economic behavior of various actors etc)
- The temporal character of risk as discrete risk events e.g., such as those covered by insurance, versus "continuous" or ongoing risks, for example the exposure to fluctuating prices and Market Risk
- Whether there is a legal, contractual basis to the risk (Contractual Risks)
Usage
Risk types enter as concept into Risk Management processes at the Risk Identification phase.
Risk Taxonomies
A Risk Taxonomy is constructed out of a collection of risk types organized along some particular classification scheme.
Risk Ontologies
A Risk Ontology, roughly speaking, encompasses a risk taxonomy but imposes more structure (in terms of relations between various concepts).
