There are many types of risk that an organisation faces, and each needs to be considered and approached in a different manner.

The different types of risk that an organisation faces are as follows:

Strategic – The management of opportunities and threats associated with the long term strategy of the firm in the larger external environment.

Financial – All uncertainties associated with the financial stability of the firm.

Operational – The management of the risk associated with internal operations and admin procedures such as ICT risk, supply chain risk or Human Resources Management risk.

Hazard – Identifies and manages the threats related to the damage of health, property or environment.

(This list was adapted from ideas documented in the ‘The IRM Risk Management Standard’)

Despite the fact that each of these all follow the risk management process, there are subtle differences between how they are conducted and managed as explained in each individual section.