Thursday, October 10, 2019

Risk Management: Possible Types of Risks



I receive many questions on Risk Management - particularly from the readers of risk management book and users of risk management course. Many times, there is a lack of clarity on possible type of risks.

Hecnce, I decided to write the possible types of risks that came to my mind and referenced my new book: I Want To Be A RMP, The Plain and Simple Way To Be A PMI-RMP, 2nd Edition.




This list, by no means is exhaustive. There can be other types. Do note that these are types of risks, not categories or classifications of risks.


1# Individual project risk: An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more objectives.

2 # Overall project risk: A risk that has an effect of uncertainty on the project as a whole.

3 # Positive risk (Opportunity): A risk that would have positive effect on one or more objectives.

4 # Negative risk (Threat): A risk that would have negative effect on one or more objectives.

5 # Known risk (Identified risk): A risk that is identified.

6 # Unknown risk (Unindentified risk): A risk that is not identified.

7 # Secondary risk: A risk that occurs because you took a risk response on a (primary) risk.

8 # Emergent risk: An arising risk that could not have been identified earlier.

9 # Residual risk: A risk that remains after you have taken a risk response.

10 # Outdated risk: A risk that didn't occur - either based on event or condition.

11 # Correlated risk: A risk that is correlated to one or more other risks.

12 # Connected risk: A risk that is connected to one or more other risks.

13 # Undifferentiated risk: A risk that has not been qualified.

14 # Differentiated risk (Qualified risk): A risk that has been qualified.

15 # Quantified risk: A risk that has been quantified, usually in terms of time and/or money.

16 # Aggregated risks: Risks that are aggrgated with one or more other risks and pose a bigger threat or opporunity.

17 # Event based risk: A risk that occurs based on an event.

18 # Non-event risk: A risk that occurs, but not based on an event, e.g., variability risks, ambiguity risks. We have seen these in an earlier post:
Risk Classification: Known-Knowns, Known-Unknowns, Unknown-knowns and Unknown-unknowns

19 # Prioritized risk (High-priority risk)A risk that has been prioritized based on the risk score, which crosses the risk threshold. 

20 # Low-priority risk: A risk that has been prioritized based on the risk score, which is below the risk threshold. This risk will be on a watch-list.


If you know any other types, I welcome your comments. They will be added to this list.



References: 

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