A Risk Category is a group of potential causes of risk.
It provides a structured way to classify risks based on their source or nature, enabling more effective identification, organization, and analysis of risks across the project or program.
Key Characteristics
- Source-Based Grouping – Organizes risks by common origin or type
- Enhances Clarity – Supports targeted analysis and planning
- Facilitates Completeness – Ensures a broad range of risks is considered
- Feeds Into Breakdown Structures – Forms the basis of a risk breakdown structure
Example Scenarios
- Grouping risks as technical, financial, or external during planning
- Using risk categories to assign ownership by functional expertise
- Categorizing new risks as they are added to the risk register
Examples of Risk Categories
Example Risk Categories
| Category | Description | Example Risks |
|---|---|---|
| Technical | Related to technology, systems, and specifications | Design errors, integration failures, software bugs |
| External | Originating outside the project or organization | Regulatory changes, market shifts, weather events |
| Organizational | Internal to the performing organization | Resource shortages, restructuring, skill gaps |
| Project Management | Arising from planning and control processes | Schedule compression, scope creep, cost estimation errors |
| Commercial/Procurement | Involving contracts, vendors, and external suppliers | Supplier delays, contract disputes, cost escalation |
| Legal/Compliance | Pertaining to laws, standards, and regulatory obligations | Data privacy violations, licensing issues, audit non-compliance |
| Strategic | Affecting alignment with business objectives or enterprise priorities | Shifts in leadership vision, portfolio reprioritization |
Role in Risk Identification and Planning
- Improves Risk Organization – Structures how risks are captured and tracked
- Supports Prioritization – Enables risk scoring and response by category
- Enables Tailored Responses – Allows strategies to align with specific risk types
- Strengthens Documentation – Enhances reporting and stakeholder communication
See also: Risk Breakdown Structure, Risk Register, Risk Assessment, Risk Source, Risk Response Plan.