Risk management: classification and management methods

The paper contains research of existing risk classifications. The new classification based on this research is developed. This classification lets to develop effective risk management system in an organization. Suggested classification assumes the selection of three risk types (global, context, system) which demand different management approaches. The manageability of global risks is low, it implies a situational approach to management and an influence of the subjective characteristics of the decision-maker. Context risks require more management resources; therefore, various methods of identification, assessment and processing are proposed for this kind of risk. However, the uncertainty that generates context risks is high, in contrast to system risks. System risks primarily affect the quality of an organization's products, and therefore must be fully manageable. Most statistical quality control methods are suitable for system risk management. Threats and opportunities at the process level must have a quick reaction from management.