Risk Management > Setup > Risk > Risk types

Use this form to create and maintain the types and sub-types of risks that the risks will be managed on.

Note

Risks may be defined as physical, financial, ethical or legal. These types will influence the processes to take depending on the impact and likelihood. Physical risks are those involving personal injuries, environmental and weather conditions and the physical assets of the organization such as property, buildings, equipment, vehicles, stock and grounds.

Financial risks are those involving the assets of the organisation and include theft, fraud, loans, license fees, attendances, membership fees, insurance costs, and lease payments, pay-out of damages claims or penalties and fines by the government. Ethical risks involve actual or potential harm to the reputation or beliefs of your club, while legal risks consist of responsibilities imposed on providers, participants and consumers arising from laws made by federal, state and local government authorities.

Tasks that use this form

Create new base risk types and sub-types

Navigating the form

The following tables provide descriptions for the controls in this form:

Risk type actions

Action Buttons

Description

New

Create a new risk type.

Delete

Delete the selected risk type.

Detail View

This detail is displayed only in the detail view of the form.

Field

Description

Type

Define a unique identifying code for a risk type. This is a user definable field for every risk type. Indicates the Type of risk according to business areas that will most likely be impacted by a risk raised. The risk type, together with the Priority of the risk determines the additional data (characteristics) and the actions required when managing the risk.

There are many different types of risk that risk management plans can mitigate. Common risks include things like accidents in the workplace or fires, tornadoes, earthquakes, and other natural disasters. It can also include legal risks like fraud, theft, and sexual harassment lawsuits. Risks can also relate to business practices, uncertainty in financial markets, failures in projects, credit risks, or the security and storage of data and records.

The following is examples of risk types and describe the type:

  • Physical - A type of risk that is based on physical assets within the organisation.
  • Financial - A type of risk that is of financial nature within the organisation.
  • Ethical - A type of risk that is associated with ethics of the people in the organisation.
  • Technical - A type of risk that is based on exposure to loss arising from activities such as design and engineering, manufacturing, technological process and test procedures.
  • Hazardous - A type of risk that is based on risks that are harmful to the environment or to the people.
  • Opportunity - A type of risk that is based on not capitalizing on opportunities which are constantly occurring.

Description

Define a short detailed description of the risk type.

Responsible person

Define the name of the person who will be responsible for the risk to resolve and investigate.

Name

Define the detail of the responsible person.

Risk appetite

The level of risk that an organisation is prepared to accept, before action is deemed necessary to reduce it. The higher the value of appetite, the lower is the risk for tolerance.

Risk importance

Define the risk importance that is used as a measurement instrument when assessing risk. The higher the value of importance, the higher is the risk.

UOM code

Select the unit of measure to define the response time for the risk type.

Response time

Define the default response time to react and resolve the risk.

The UOM and response time for the risk type are setup base on the priority classification of the risk.

 

Sub-Forms

Field

Description

Risk Sub-Type level 1

Sub-type

Define a unique identifying code for a risk sub-type. This field defines the next level of classification of the selected risk type. (For example: Risk type = Financial, Sub types level 1 = Accountability, Strategy and External). There can be multiple sub types for a risk type.

Description

Defines a short detailed description of the risk type.

Risk appetite

Define the risk appetite that is used as an measurement instrument when assessing risk. The higher the value of appetite, the lower is the risk for tolerance.

Risk importance

Define the risk importance that is used as an measurement instrument when assessing risk. The higher the value of importance, the higher is the risk.

Risk Sub-Type level 2

Sub-type level 2

Define a unique identifying code for a risk sub-type. This field defines the next level of classification of the selected risk type and sub type level 1. (For example: Risk type = Financial, Sub types level 1 = Accountability, Sub types level 2 = Fraud, Misrepresentation, Incompetent). There can be multiple sub types for a risk type.

Description

Define a short detailed description of the risk type.

Priority model

This field defines the priority model that will be used to calculate or determine the priority.

Risk appetite

Define the risk appetite that is used as an measurement instrument when assessing risk. The higher the value of appetite, the lower is the risk for tolerance.

Risk importance

Define the risk importance that is used as an measurement instrument when assessing risk. The higher the value of importance, the higher is the risk.