Risk Clustering

The phenomenon where multiple risks concentrate in particular areas of the organization or strategy, potentially creating compounding effects that exceed the sum of individual risk impacts. Risk clustering can be visualized using the Four Perspective Risk Map, which shows how risks distribute across strategic perspectives. Identifying risk clusters helps organizations understand potential systemic vulnerabilities and implement more comprehensive mitigation strategies. In RBPM, addressing risk clustering may require enterprise-wide approaches rather than risk-by-risk treatments.