Risks which have to be managed by risk management are broadly categorized. Following are the categories in which the risks fall:
- An organization can face Political Risks which can include community opposition, state government opposition and reduction of subsidy.
- Regulatory Risks can also be faced by the organization which may include more stringent requirements, statutory non compliance, water allocation restrictions etc.
- Excessive complaint from the Customer and consistent breach of service standards can also be a risk.
- Environmental risks can also arise which can include habitat destruction and air, water or soil contamination.
- Financial risks which includes rising interest rates, revenue shortfall, significant unforeseen expenditure can also arise.
- 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.
- Procurement and contractual risks which includes loss of supply, product obsolescence and contractor business failure are also risks associated with organization.
- Construction, Operation and Maintenance risks which includes work injury, incorrect operational and incorrect maintenance procedures.
- Asset Failure is another risk which includes catastrophic structural failure, functional failure and pre-mature ageing of assets.
- Security of asset is important which is affected by the risk of sabotage, vandalism and theft.
- Litigation is another risk which includes public liability actions, employee actions and service provider actions.
- Natural events which include lightening strikes, floods and fire also major risks associated with the organization.
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