TYPES OF

RISKS
PRESENTED BY:
DAÑOS, GADNER
DELA CRUZ, EIVERSON
LAPUT, TISHA MAE
MONTISA, DHANNICA

REPORTED BY: EIVERSON DELA CRUZ

TIMESCALE OF RISK
IMPACT
-IT IS USEFUL IN ANALYSING
THE RISK EXPOSURE OF AN
ORGANIZATION
 CLASSIFICATION OF RISK
SHORT TERM RISK continuity and monitoring of routine operations.

concerned with the management of tactics, projects and

MEDIUM-TERM RISK
other change programmes.

concerned with the development and delivery of effective

LONG TERM RISK and efficient strategy.
FOUR TYPES
OF RISKS
COMPLIANCE RISKS
It is an organization's legal, financial and criminal
exposure if it does not follow industry laws and
regulations.

HAZARD RISKS
It is associated with a source of potential harm or a
situation to undermine objectives in a negative way.
 CONTROL RISKS
It is associated with unknown and unexpected events.
They are sometimes referred to as uncertainty risks and
they can be extremely difficult to quantify.

OPPORTUNITY RISKS
The risks that are usually deliberated sought or embraced
by the organization. This is the most important type of
risk for the future long-term success of any organization.
REPORTED BY: DHANICA MONTISA

EMBRACE OPPORTUNITY RISK

Opportunity risk are type of risk with potential to
enhance(although they can also inhibit) the
achievement of the mission of the organization.
Opportunity risk are normally associated with the
development of new or amended strategies, although
opportunities can also arise from enhancing the
efficiency of the operations and implementing change
initiatives.
 Example:
A company is considering launching a new product that would require
a substantial capital investment. However, the company is uncertain
as to whether the product will be profitable.

Opportunity Management is the approach that seeks to maximize the

benefits of taking entrepreneurial risks.
MANAGE UNCERTAINTY RISK
Uncertainty risk is the risk associated with not knowing or not
being able to quantify the potential losses and gains
associated with any given action or decision.
Uncertainty or control risk are an inevitable part of undertaking
a project.

The nature of control risk and the appropriate responses

depend on the level of uncertainty and the nature of risk.

Control Management is concerned with reducing the

uncertainty associated with significant risks and reducing the
variability of the outcomes.
REPORTED BY: GADNER DANOS

MITIGATE HAZARD RISKS

Organizations face exposure to a wide range of risks.

These risks will be hazard risks, control risks and
opportunity risks. Organizations need to tolerate a hazard
risk exposure, accept exposure to control risks and invest
in opportunity risks.
REPORTED BY: GADNER DANOS
REPORTED BY: GADNER DANOS

MINIMIZE COMPLIANCE RISKS

All organizations will be aware of the wide range of

compliance requirements that they have to fulfil. These
compliance requirements vary considerably between
business sectors, and many sectors are highly regulated
with their own dedicated regulator for the industry or
sector.
REPORTED BY: GADNER DANOS

MINIMIZE COMPLIANCE RISKS

It is important for organizations to recognize their

compliance risks and include consideration of these risks
in their risk management activities.
It is also important to ensure that the various areas
of risk management expertise within the company co-
operate with each other.
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