Risk types and levels

To record person-related risks for either a legal or private person, the Tuum system provides two key parameters:

These parameters are interrelated: the risk type defines the nature or category of the risk (e.g. credit risk), while the risk level indicates its potential impact (e.g. low, medium, or high).

You can define how these parameters are used, including the criteria for assigning them, based on your internal risk policy framework.

Below are theoretical examples to help illustrate how risk type and risk level can be applied.

The examples below are for illustrative purposes only and are not predefined in the Tuum system. You must define the appropriate risk types and risk levels based on your organisation’s risk policies, as described below.

Create risk type

Go to Persons > Settings > Risk types.
On the Risk types page, click Add .

The Create risk type page opens, where you can define the Risk type code, Person type, and Description.

For example, you can create different risk types such as Credit risk, Operational risk, or Reputation risk, depending on your risk classification needs.

You can add a risk type either when creating a person or editing an existing one.

Create risk level

Go to Persons > Settings > Risk levels.
On the Risk levels page, click Add .

The Create risk level page opens, where you can define the Risk level code and Description.

For example, you can create risk levels such as High, Medium, and Low to indicate the impact or severity of the risk. A High risk level means that the person is considered to carry the greatest level of risk.

You can add a risk level either when creating a person or editing an existing one.

Assign risk

When assigning a risk to a person, you must select both the Risk type and the Risk level. For example, the outcome could be Risk type: Operational risk with an Impact level: Medium.

See how to add a risk when creating a person.

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Last updated 6 days ago

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