FAQs
Here are the 3 basic categories of risk:
- Business Risk. Business Risk is internal issues that arise in a business. ...
- Strategic Risk. Strategic Risk is external influences that can impact your business negatively or positively. ...
- Hazard Risk. Most people's perception of risk is on Hazard Risk.
What is risk for example? ›
to do something or to enter a situation where there is a possibility of being hurt or of a loss or defeat: He risked his life helping another man escape the fire. We risk losing the business if we don't pay off the loan on time.
What are the 4 major risks? ›
Risk can come in various forms and can be categorized into four main categories: financial risk, operational risk, strategic risk, and compliance risk.
What are the general risks? ›
General risk means the risk of loss (arising from changes in interest rate, equity prices, exchange rate and commodity prices in the value of a bank's trading book positions held in debt securities, equities, foreign exchange (including gold), commodities and other related derivative contracts.
What are the 3 C's of risk? ›
Defining Connected Risk
A connected risk approach aims to connect risk owners to their risks and promote organization-wide risk ownership by using integrated risk management (IRM) technology to enable improved Communication, Context, and Collaboration — remember these as the three C's of connected risk.
What are the top 5 risk categories? ›
Risk categories classify risks based on common characteristics, sources, or impacts, allowing for a systematic and comprehensive approach to risk management. Common risk categories include strategic risks, operational risks, financial risks, compliance risks, and reputational risks.
What are six core risks? ›
While the types and degree of risks an organization may be exposed to depend upon a number of factors such as its size, complexity business activities, volume etc, it is believed that generally the risks banks face are Credit, Market, Liquidity, Operational, Compliance / Legal /Regulatory and Reputation risks.
What are the 7 primary risk factors? ›
What are the Primary Risk Factors?
- tobacco use.
- the harmful use of alcohol.
- raised blood pressure (or hypertension)
- physical inactivity.
- raised cholesterol.
- overweight/obesity.
- unhealthy diet.
- raised blood glucose.
What are the 4 deep risks? ›
These risks have names—inflation, deflation, confiscation, and devastation—and any useful discussion of portfolio design of necessity incorporates their probabilities, consequences, and costs of mitigation.
What are the 5 systematic risks? ›
The five main types of systematic risk include market risk, interest rate risk, purchasing power/inflation risk, and exchange rate risk. Market risk functions like a string of dominoes in that the tipping of one can cause others to topple. Investors tend to follow the movements of the market.
The OCC has defined nine categories of risk for bank supervision purposes. These risks are: Credit, Interest Rate, Liquidity, Price, Foreign Exchange, Transaction, Compliance, Strategic and Reputation. These categories are not mutually exclusive; any product or service may expose the bank to multiple risks.
What are 3 risk factors? ›
Types of risk factors
- smoking tobacco.
- drinking too much alcohol.
- nutritional choices.
- physical inactivity.
- spending too much time in the sun without proper protection.
- not having certain vaccinations.
- unprotected sex.
What are the 3 types of risk we assess for? ›
9 Types of Risk Assessments
- Quantitative Risk Assessments. ...
- Qualitative Risk Assessments. ...
- Semi-quantitative Risk Assessments. ...
- Generic Risk Assessment. ...
- Site-Specific Risk Assessment. ...
- Asset-Based Risk Assessments. ...
- Vulnerability-Based Risk Assessments. ...
- Threat-Based Risk Assessments.
What are the 3 most general categories of risks to a project? ›
The Project Management Body of Knowledge (PMBOK) sorts project risk into three categories: operational risks, short-term strategic risks, and long-term strategic risks.