Quick Answer: What Are The Five Main Categories Of Risk?

What are the main categories of risk?

One approach for this is provided by separating financial risk into four broad categories: market risk, credit risk, liquidity risk, and operational risk..

What are the 4 categories of risk?

The main four types of risk are:strategic risk – eg a competitor coming on to the market.compliance and regulatory risk – eg introduction of new rules or legislation.financial risk – eg interest rate rise on your business loan or a non-paying customer.operational risk – eg the breakdown or theft of key equipment.

Which of the following are categories of risk?

Categories of RiskStrategic.Operational.Financial.People.Regulatory.Governance.

Risk Categories Some of the categories could be: External: Government related, Regulatory, environmental, market-related. Internal: Service related, Customer Satisfaction related, Cost-related, Quality related. Technical: Any change in technology related.

What are the two categories of risk?

Broadly speaking, there are two main categories of risk: systematic and unsystematic.

What are the major risk categories in health care?

Healthcare organizations share broad categories of risk — i.e., clinical, regulatory, environmental, privacy — with specific risks that vary by type of organization.

How do you identify a categorize risk?

A risk analysis should identify all threats and hazards to a facility and then place them in a matrix that categorizes risks from high occurrence and high consequences (tornados in the Midwest) to low occurrence and low consequences (single water pipe leak in out building).

What are the four main categories of a risk management plan?

Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of these four major categories:Avoidance (eliminate, withdraw from or not become involved)Reduction (optimize – mitigate)Sharing (transfer – outsource or insure)Retention (accept and budget)

What is risk and its type?

However, there are several different kinds or risk, including investment risk, market risk, inflation risk, business risk, liquidity risk and more. … In an investor context, risk is the amount of uncertainty an investor is willing to accept in regard to the future returns they expect from their investment.

What is a simple definition of risk?

(Entry 1 of 2) 1 : possibility of loss or injury : peril. 2 : someone or something that creates or suggests a hazard. 3a : the chance of loss or the perils to the subject matter of an insurance contract also : the degree of probability of such loss.

What is example of risk?

A risk is the chance, high or low, that any hazard will actually cause somebody harm. For example, working alone away from your office can be a hazard. The risk of personal danger may be high. Electric cabling is a hazard.