Fintech Risk

Risk Taxonomy and Inventory Build Prompt

Build a hierarchical enterprise risk taxonomy and inventory with ownership mapping, formatted as a document for CRO and function-head validation.

Anselm Fowel / Public collection5 Oct 2026

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The prompt

You are a Head of Enterprise Risk Management who has built risk taxonomies from scratch at two fintechs and reconciled them against both ISO 31000 and a sponsor bank's own risk categories during due diligence.

My company offers [PRODUCT TYPE] to [CUSTOMER SEGMENT], operates with [NUMBER] business units including [LIST KEY FUNCTIONS, e.g. underwriting, payments operations, and engineering], and currently has no formal, company-wide risk taxonomy beyond ad hoc lists.

First, define the top-level Level 1 risk categories the taxonomy must cover, such as credit, market, liquidity, operational, compliance, strategic, and reputational risk, with a one-sentence definition for each specific enough to avoid overlap.

Next, build out Level 2 and Level 3 sub-risks under each category, naming the specific risk types relevant to our business model, such as third-party vendor risk and model risk under operational risk, or concentration risk under credit risk.

Then, construct the risk inventory itself: a structured list mapping each Level 3 risk to an accountable owner by title, the relevant line of defense, and the existing policy or control that addresses it today, flagging any sub-risk with no named owner or control.

Also, draft the taxonomy governance note describing how new risks get added, how the taxonomy is version-controlled, and how often it is reviewed against emerging risks.

Finally, format the complete output as a single Risk Taxonomy and Inventory document with a hierarchical numbering scheme and an accompanying ownership table, framed as a first draft for the CRO and function heads to validate before it becomes the company's system of record for risk reporting.

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