Risk Management practices are widely used in public and the private sectors, covering a wide range of activities

or operations. These include: Finance and Investment Insurance Health Care Public Institutions Governments

Source of risk Hazard Financial Operation Strategic

Risk:-1)Strategic goals of the organization

2)Financial safeguarding assets Financial risk an umbrella term for multiple types of risk associated with financing, including financial transactions that include company loans in risk of default. Risk is a term often used to imply downside risk, meaning the uncertainty of a return and the potential for financial loss. Type: Asset-backed risk Credit risk Foreign investment risk Liquidity risk Market risk Operational risk

3)Operational processes that achieve goals An operational risk is, as the name suggests, a risk arising from execution of a company's business functions. It is a very broad concept which focuses on the risks arising from the people, systems and processes through which a company operates. It also includes other categories such as fraud risks, legal risks, physical or environmental risks. A widely used definition of operational risk is the one contained in the Basel II [1] regulations. This definition states that operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.

4)Compliance laws and regulations 5)Reputation public image is a type of risk related to the trustworthiness of business. Damage to a firm's reputation can result in lost revenue or destruction of shareholder value, even if the company is not found guilty of a crime. Reputational risk can be a matter of corporate trust, but serves also as a tool in crisis prevention. This type of risk can be informational in nature or even financial. Extreme cases may even lead to bankruptcy (as in the case of Arthur Andersen). Recent examples of companies include: Toyota, Goldman Sachs, Oracle Corporation, NatWest and BP. The reputational risk may not always be the company's fault as per the case of the Tylenol cyanide panic after seven people died in 1982.[2]
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Types of Risks Operational Hazard Physical

Strategic Capital / resource allocation Industry / competitors

Technological Databases

Security Confidential information

Stakeholder Legal Compliance Regulatory

Financial Capital markets Credit risks Taxes

Human capital Retention Training

Reputational