Important Risk Types

Risk, as defined in ISO 31000 is "the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risks can originate from various sources, such as uncertainty in financial markets, project failures (at any phase of its life-cycle), legal liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attack from an adversary, or events of uncertain or unpredictable root-cause.