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Organisations face risks to their operations from factors both internal and external to the organisation. Is there an easy way to classify these risks so those who are new to risk management can readily identify them?

And for other types of risk management how are risks classified?

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The seven operational risk loss event groups recommended by the Basel Committee are:

  1. Internal Fraud
  2. External Fraud
  3. Employment Practices & Workplace Safety
  4. Clients, Products, & Business Services
  5. Damage to Physical Assets
  6. Business Disruption & System Failures
  7. Execution, Delivery, & Management Process

However there are alternative classifications:

  1. Employee: loss events resulting from the actions or inactions of a person who works for a firm.
  2. Business Process: loss events arising from a firm’s execution of business operations.
  3. Relationships: loss events caused by the connection or contact that a firm has with clients, regulators, or third parties. This category focuses on the interaction between a firm and other entities; relationship risks involve both parties.
  4. Technology: loss events due to piracy, theft, failure, breakdown, or other disruption in technology, data or information; this category also includes technology that fails to meet the intended business needs.
  5. External: loss events caused by people or entities outside a firm; the firm cannot control their actions.

I'm sure there are more..

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