RISK ANALYSIS
Risk analysis can be defined in different perspective base on how risk analysis relates to other concepts. It may 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." Is better to divide risk analysis into two components: (a) risk assessment (identifying, evaluating, and measuring the probability and severity of risks) and (b) risk management. some authors 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.You May Read: Risk Analysis in Engineering
Quantitative risk analysis
Quantitative risk analysis seeks to numerically assess probabilities for the potential consequences of risk, and is often called probabilistic risk analysis or probabilistic risk assessment (PRA)Pseudo-quantitative risk assessment
This generally assign numbers to the likelihood and consequences for a risk but do not build a mathematical model of the risk as suggested by PRA.Risk Engineering Analysis
In our next article we may review on Risk analysis in engineering
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