Risk classification based on where risk control lies
From the point of view of where risk control lies, five classifications of risk can be listed:
- External risks which are unpredictable like acts of god, third party risks and so on.
- External risks which are predictable, but uncertain, like weather.
- Internal risks of technical nature arising directly from the technology of the project work, design, construction or operation of the facility.
- Internal risks of non-technical nature. These are within control and arise out of failure of the project team to achieve its expected performance. These result in schedule delays, cost overruns or quality deficiencies.
Legal risks:
- Relevant to civil law - like contract arrangements, patent rights.
- Relevant to criminal law - like not adhering to statutes example Health and Safety at Work Acts in UK.