What is Risk Categorization?

Risk categorization in project management is analogous to grouping comparable goods into categories, much like organizing your clothes by kind or color. In this situation, it is about categorizing risks based on common features like as their potential influence on the project, their causes, or the parts of the project they may affect. It is easier for project managers to comprehend, prioritize, and manage risks when they are organized into categories. It’s similar to categorizing things into distinct categories to make it easier to manage and deal with each set of hazards independently.