Risk Analysis : Development Of Risk Analytics

Risk or threat is common and found in various fields of daily life and business. This concept of risk is found in various stages of development and execution of a project. Risks in a project can mean there is a chance that the project will result in total failure, increase of project costs, and an extension in project duration which means a great deal of setbacks for the company. The process of risk management is composed of identifying, assessing, mitigating, and managing the risks of the project. It

Risk refers to a likelihood, probability, a chance that a loss may occur in a given organization. Most of the times, there is a high risk when there is vulnerability. In this case, vulnerability refers to a weakness that the organization has. Risk assessment refers to the process of identification of potential hazards and proper analysis of the expected losses if those hazards occur (Homeland Security, n.d.). Risk assessment as a way of profiling risk according to impact to the organization. Some organizations have business impact analysis exercises geared towards determination of potential hazards based risk assessment approaches. Organizations’ risk differ depending on the size and the type of business they are doing. The disparity in organizations’ risk call for different adaptation of risk assessment approaches. Even with the disparities of the businesses, proper risk management not only ranks the risks according to the seriousness but also identifies the best methods to control risks in an organization.

We are all familiar with risk. In fact, it is a key component in our everyday material life and we often manage it automatically either when dealing with mundane tasks or major hazards.

Risk analysis is an integral part of data safety within an organization and the analysis is vital to the mission and success of an organization. Risk analysis is used “to identify threats and then provide recommendations to address these threats” (Taylor et al, 2006). Risk analysis encompasses not only the equipment and programs used in an organization but also covers the culture, managerial, and administrative processes to assure data security. A key factor in risk analysis is to have a good Information Resource Management Plan.

This paper discusses three risk analysis methodologies, specifically, MSRAM, OCTAVE, and CRAMM and provides a detailed description of each and how they incorporate risk into a platform for decision makers to use in their endeavors to prevent, protect, mitigate, respond, and in recovery measures as part of the risk assessment and management processes.

There are two main types of risk management assessments. They are qualitative and quantitative methodologies. With the qualitative methodology, a relative values are used to determine the probability and impact of a risk (Gibson, 2011). This type of information can be collected quickly. A quantitative risk assessment is used to estimate how much money would be lost should a vulnerability be exploited (Vanderberg, n.d.). With the quantitative methodology, actual dollar values are used. It can take a time to gather this type of data. Once the data is gathered, however, a math formula is used to determine the priority of risks and in turn show the results of controls (Gibson, 2011).

Risk Analysis: Define the approach to identify the outcomes of the project depending on the qualification analysis (qualitative and quantitative), the percentage of probability of occurrence, and the assigned value of the impact to the risks to respond.

Risk analysis- to determine the probability of the negative risk(s) occurring and the associated consequences.

Retrospective risk assessment deals with problems that have happened or problems that almost occurred. With this method, looking back on what caused the problem to occur or almost occur are assessed. Then ideas are gathered to help prevent these problems from happening again. This is where risk managers are essential to a healthcare organization. This process was created and is used today to lessen the chances of financial risks to the healthcare organization now and long-term. This is done by trying to limit the liability throughout the system of the organization, whether this is staff, goals, rules, equipment, or etc. This is a very complex process and is much deeper than finding a single employee that was involved and blaming them for the fault. With retrospective risk assessment the uses of analytics are extremely important to figure out what has caused a problem and what can be done to prevent it from happening again or any slight alternatives to the problem.

18 Importance of Risk Monitoring ................................................................................................... 18 Strategy to Monitor Major Risks ................................................................................................. 19 Risk Monitoring Matrix ............................................................................................................... 20

The first step in the journey to a successful foreign direct investment is to determine if one would add value to begin with. As discussed in Part I, out team determined that it would make sense for GM to capitalize on global expansion in a BRIC country, specifically China. The next step is to perform a risk assessment on the BRIC countries to confirm where GM should target its foreign direct investment. In addition, we will offer GM a recommendation on how to enter the foreign market, be it joint venture or acquisition. The following sections will reveal the results of our team’s Political, Economical, Sociocultural, and Technological (PEST) Risk Assessment, as well as offer a recommendation based on our quantitative and qualitative

Risk is defined as an incident that has a possibility of happening, and could have either a good or bad influence to a project. A risk may have one or more reasons and impacts. If there is an uncertain event occurs, there may be an impact on the project cost, schedule or performance. All projects assume some element of risk, and it’s through risk management where tools and techniques are used to monitor and control those events that have the potential to impact the results of a project. Risk management is an ongoing processes that carry on through the life cycle of a project or an event. The risk management processes include planning, identification, analysis, monitoring and control. These processes are always needed to update throughout the project lifecycle as new risks can be traced when the project is ongoing. The main reason of risk management is to decrease the negative probability and impact to the project. On the other hand, any event that could have a positive impact should be exploited.

Risk assessment is the method of collecting relevant information in order to establish a level of understanding of the risk in a particular procedure/task or decision (ABS, 2000). It can be said that there is not an internationally accepted description defining the term of risk (IACS, 2012). However IMO describes risk as the combination of the severity of a consequence and the frequency that an incident may occur (MSC Circ 1023 / MEPC Circ 322). The process of risk assessment requires hazard identification establishing the probability or frequency of appearance of an identified hazard and the consequences/impacts that it has (ABS, 2000). The most prevailing methods that are used for risk assessment are the qualitative, quantitative and semi-quantitative methods. Although for a more broad approach a combined method is usually used in

Two critical issues need to be addressed as part of documenting risks. The first is risk mitigation which involves steps taken to decrease the probability of occurrence of risk. Risk mitigation actions have a cost associated with them. Therefore, it is critical to determine the probability of

Risk assessment is a part of risk management. For most organizations, risk management is an evolving correction that goes on at disparate maturity levels