Categories of risk

  • This risk category list below is provided for two reasons: 

    • as a prompt to help when identifying sources and types of risks
    • for larger or more complex projects that may benefit from using the using risk category management as an addition to their approach to proactive risk management.

    • Under performance to spec
    • Mgmt. performance failure
    • Contractor collapse
    • Insolvency of promoter
    • Supplier fails to meet contractual obligations
    • Insufficient capital
    • Insufficient revenue
    • Market fluctuations
    • Fraud, theft
    • Partnership failure
    • Non-insurable situations
    • Exchange rate fluctuation
    • Interest rate instability
    • Inflation
    • Shortage of working capital
    • Failure to meet projected revenue targets
    • Market developments that adversely affect plan
    • Changed legislation invalidates assumptions in plan
    • Failure to obtain appropriate approval or consent
    • Unexpected regulatory controls or licensing requirements
    • Changes in tax or tariff structure
    • Mgmt. incompetence
    • Inadequate corporate policies
    • Inadequate adoption of mgmt. practices
    • Poor leadership
    • Key personnel have inadequate authority to fulfil their roles
    • Poor staff selection
    • Vested interests create conflict and compromise overall aims
    • Individual or group interests given unwarranted priority
    • Personality clashes
    • Indecision or inappropriate decision-making
    • Lack of operational support
    • Inadequate or inaccurate information
    • Health & safety constraints
    • Change of government or council policy
    • Change of government or council administration
    • War and disorder
    • Adverse public opinion or media interest
    • Natural disaster
    • Storms, floods, tempests
    • Pollution incidents
    • Transport problems including air, rail and road vehicle collision
    • Inadequate design
    • Professional negligence
    • Human error or incompetence
    • Infrastructure failure
    • Operation lifetime lower than expected
    • Residual value of assets lower than expected
    • Increased dismantling or decommissioning costs
    • Safety being compromised
    • Performance failure
    • Residual maintenance problems
    • Scope 'creep'
    • Unclear expectations
    • Breaches in security or information security
    • Lack of or inadequacy of business continuity