Risk management
Risk management

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

Free course

Risk management

4.4 Categorising different types of risk

Many organisations find it helpful to put their risks into categories – for example, whether the risk event is internal or external to the organisation. It is also common to categorise by the type of risk (e.g. financial, operational, compliance, etc.). The reasons for doing this can generally be described as follows:

  • To allow the organisation to understand the types of risks it has at a macro level.
  • To consider priorities, if, for example, a particular categorisation appears with greater significance and frequency than others.
  • To consider combining efforts in particular areas (e.g. if common risk types emerge can common treatments be defined?). This is covered more in Session 5.
  • To engage company specialists on the particular risk types.

Many organisations find it helpful to create other categories based on root cause or other businesses themes, and will often have their own strategic objectives, principal risks or priorities to align with.

RM_1

Take your learning further371

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses372.

If you are new to university level study, we offer two introductory routes to our qualifications. Find out Where to take your learning next?373 You could either choose to start with an Access courses374or an open box module, which allows you to count your previous learning towards an Open University qualification.

Not ready for University study then browse over 1000 free courses on OpenLearn375 and sign up to our newsletter376 to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371