Risk Control Techniques, Limitations And Challenges

1052 Words Apr 8th, 2016 5 Pages
Risk Control Techniques, Limitations and Challenges
6 April 2016, Posted by Shuhui Yang (Team N)

D ecisions are along with uncertainties, which always indicate a potential loss. Therefore, risk analysis and management have played an increasingly important role in business decisions. As the demands arise, risk analysis techniques are gradually improving and perfecting. Various tools are also developed to support data analysis and provide decision-making suggestions. This blog is aimed to introduce the cutting edge techniques of risk analysis, as well as reveal its limitations and challenges. Techniques
The risk control process normally includes three steps: risk identification, risk analysis, and risk response planning [1].
 Risk Identification is a business intensive process. It requires thorough information, expert judgement, and acute business sense. Although multiples tools and models can be used for support, human intelligence dominates this process.
 Risk Analysis is more like a data-oriented process while business insights are still needed. According to the tools used, this process can be categorized as Qualitative Risk Analysis and Quantitative Risk Analysis. Which one to choose depends on specific situations, e.g. low level of risk or lack of adequate data fits qualitative analysis, while a thorough, complete risk assessment requires quantitative one [2].
 Risk Response Planning is a set…
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