Thursday, April 07, 2022

Risk Management: Possible Types of Risks

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

Hence, I decided to write the possible types of risks that came to my mind and referenced my new course: RMP Live Lessons, Guaranteed Pass.

Note: This was posted earlier with a few risks. A new set of risks have been added to the list recently with the availability of new Risk Management Professional (RMP) courses. 

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10 # Outdated risk: A risk that didn't occur - either based on event or condition.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 aggregated with one or more other risks and pose a bigger threat or opportunity.

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.

21 # Enterprise risk: A risk of an entire enterprise or organization. It’s also known as Business risk..

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


[2] New Course - RMP 30 Contact Hours Online, by Satya Narayan Dash

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