Risk analysis

Risk analysis can be defined in many different ways, and much of the definition depends on how risk analysis relates to other concepts. Risk analysis can be "broadly defined to include risk assessment, risk characterization, risk communication, risk management, and policy relating to risk, in the context of risks of concern to individuals, to public- and private-sector organizations, and to society at a local, regional, national, or global level." A useful construct is to divide risk analysis into two components: (1) risk assessment (identifying, evaluating, and measuring the probability and severity of risks) and (2) risk management (deciding what to do about risks). Some books take a slightly different approach and define risk management as the overarching concept, where risk analysis is the component that seeks to identify and measure the risks and risk mitigation is determining what to do about the risks.

Risk analysis can be qualitative or quantitative.Qualitative risk analysis uses words or colors to identify and evaluate risks or presents a written description of the risk, and quantitative risk analysis (QRA) calculates numerical probabilities over the possible consequences.

Risk analysis (business)

Risk analysis is a technique used to identify and assess factors that may jeopardize the success of a project or achieving a goal.

This technique also helps to define preventive measures to reduce the probability of these factors from occurring and identify countermeasures to successfully deal with these constraints when they develop to avert possible negative effects on the competitiveness of the company.

One of the more popular methods to perform a risk analysis in the computer field is called facilitated risk analysis process (FRAP).

Facilitated risk analysis process

FRAP analyzes one system, application or segment of business processes at time.

FRAP assumes that additional efforts to develop precisely quantified risks are not cost effective because:

Risk analysis (engineering)

Risk analysis is the science of risks and their probability and evaluation.

Probabilistic risk assessment is one analysis strategy usually employed in science and engineering.

Risk analysis and the risk workshop

Risk analysis should be performed as part of the risk management process for each project. An exhaustive risk analysis for a project is reported by Cardenas et al. The data of which would be based on risk discussion workshops to identify potential issues and risks ahead of time before these were to pose cost and/ or schedule negative impacts (see the article on Cost contingency for a discussion of the estimation of cost impacts).

The risk workshops should be attended by a large group ideally between 6 to 10 individuals from the various departmental functions (e.g. project manager, construction manager, site superintendent, and representatives from operations, procurement, [project] controls, etc.) so as to cover every risk element from different perspectives.