It is known that the main objective of risk management is to restrict any unpleasant revelations. The process is in need of comprehensive listing of recognized risks. It is seen that categorising of risk is a particular way to group the risks under a general region which is helpful for a systematic and structured approach in recognising the risks with respect to a specific level of detail.
It is necessary to categorize risk as it provides a greater management concentration, enhancing the opportunities of recognising a wider risk ranges and thoughts that can be provoking (McNiff 2016). The categorization of risk provides an approach that is structured for the identification of risk with the help of which all the areas of risks are discovered and analysed without any fail.
It is seen that categorizing of risk enhances the efficiency and quality of risk recognition and evaluation of the processes. The risk grouping by highlighting the general root causes is helpful for the enhancing of the efficient responses of the risk. It is even seen that risk categorization aids in the assessment of risk with the help of interviews and meetings with the respondents who have been chosen for their knowledge regarding a relevant and particular risk category (Krueger and Casey 2014). Therefore, it can be said that risk categories provide increased capability for monitoring and controlling the risks that have been recognized and classified within the same root or region.
Krueger, R.A. and Casey, M.A., 2014. Focus groups: A practical guide for applied research. Sage publications.
McNiff, J., 2016. You and your action research project. Routledge.