Categories of Sources of Risk

Risks which have to be managed by risk management are broadly categorized. Following are the categories in which the risks fall:

  1. An organization can face Political Risks which can include community opposition, state government opposition and reduction of subsidy.
  2. Regulatory Risks can also be faced by the organization which may include more stringent requirements, statutory non compliance, water allocation restrictions etc.
  3. Excessive complaint from the Customer and consistent breach of service standards can also be a risk.
  4. Environmental risks can also arise which can include habitat destruction and air, water or soil contamination.
  5. Financial risks which includes rising interest rates, revenue shortfall, significant unforeseen expenditure can also arise.
  6. An organization can also face Public health or safety risks which may include pathogen contamination of potable supply, inadequate fire fighting capacity and public injury.
  7. Procurement and contractual risks which includes loss of supply, product obsolescence and contractor business failure are also risks associated with organization.
  8. Construction, Operation and Maintenance risks which includes work injury, incorrect operational and incorrect maintenance procedures.
  9. Asset Failure is another risk which includes catastrophic structural failure, functional failure and pre-mature ageing of assets.
  10. Security of asset is important which is affected by the risk of sabotage, vandalism and theft.
  11. Litigation is another risk which includes public liability actions, employee actions and service provider actions.
  12. Natural events which include lightening strikes, floods and fire also major risks associated with the organization.
Recent Posts
Share your thoughts about Categories of Sources of Risk
Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.