Risk analysis (engineering)
Encyclopedia
Risk analysis is the science
of risk
s and their probability and evaluation.
Probabilistic risk assessment
is one analysis strategy usually employed in science and engineering.
process for each project
. 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 chaired 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.
The outcome of the risk analysis would be the creation or review of the risk register to identify and quantify risk elements to the project and their potential impact.
Given that risk management is a continuous and iterative process, the risk workshop members would regroup on at regular intervals and project milestones to review the risk register mitigation plans, make changes to it as appropriate and following those changes re-run the risk model. By constantly monitoring risks these can be successfully mitigated resulting in a cost and schedule savings with a positive impact on the project.
environment has been the subject of some methodologies; Information security
is a science that based itself on the evaluation and management of security risk, regarding the information used by organization to pursue their business objectives.
Standardization bodies like ISO, NIST, The Open Group
, Information Security Forum
had published different standards in this field.
International organizations such ENISA, ISACA had published many papers about it.
Science
Science is a systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe...
of risk
Risk
Risk is the potential that a chosen action or activity will lead to a loss . The notion implies that a choice having an influence on the outcome exists . Potential losses themselves may also be called "risks"...
s and their probability and evaluation.
Probabilistic risk assessment
Probabilistic risk assessment
Probabilistic risk assessment is a systematic and comprehensive methodology to evaluate risks associated with a complex engineered technological entity ....
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 managementRisk management
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
process for each project
Project
A project in business and science is typically defined as a collaborative enterprise, frequently involving research or design, that is carefully planned to achieve a particular aim. Projects can be further defined as temporary rather than permanent social systems that are constituted by teams...
. 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
Cost contingency
When estimating the cost for a project, product or other item or investment, there is always uncertainty as to the precise content of all items in the estimate, how work will be performed, what work conditions will be like when the project is executed and so on. These uncertainties are risks to the...
for a discussion of the estimation of cost impacts).
The risk
Risk
Risk is the potential that a chosen action or activity will lead to a loss . The notion implies that a choice having an influence on the outcome exists . Potential losses themselves may also be called "risks"...
workshops should be chaired by a large group ideally between 6 to 10 individuals from the various departmental functions (e.g. project manager, construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
manager, site superintendent, and representatives from operations, procurement, [project] controls, etc.) so as to cover every risk element from different perspectives.
The outcome of the risk analysis would be the creation or review of the risk register to identify and quantify risk elements to the project and their potential impact.
Given that risk management is a continuous and iterative process, the risk workshop members would regroup on at regular intervals and project milestones to review the risk register mitigation plans, make changes to it as appropriate and following those changes re-run the risk model. By constantly monitoring risks these can be successfully mitigated resulting in a cost and schedule savings with a positive impact on the project.
Risk analysis and Information security
The risk evaluation of the Information technologyInformation technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
environment has been the subject of some methodologies; Information security
Information security
Information security means protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, perusal, inspection, recording or destruction....
is a science that based itself on the evaluation and management of security risk, regarding the information used by organization to pursue their business objectives.
Standardization bodies like ISO, NIST, The Open Group
The Open Group
The Open Group is a vendor and technology-neutral industry consortium, currently with over three hundred member organizations. It was formed in 1996 when X/Open merged with the Open Software Foundation...
, Information Security Forum
Information Security Forum
The Information Security Forum is an independent, not-for-profit association of leading organizations from around the world. It is dedicated to investigating, clarifying and resolving key issues in information security, and developing best practice methodologies, processes and solutions that meet...
had published different standards in this field.
International organizations such ENISA, ISACA had published many papers about it.
See also
- Actuarial scienceActuarial scienceActuarial science is the discipline that applies mathematical and statistical methods to assess risk in the insurance and finance industries. Actuaries are professionals who are qualified in this field through education and experience...
- Benefit risk
- Cost risk
- Event chain methodologyEvent chain methodologyEvent chain methodology is an uncertainty modeling and schedule network analysis technique that is focused on identifying and managing events and event chains that affect project schedules...
- ENISA
- Information securityInformation securityInformation security means protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, perusal, inspection, recording or destruction....
- Information Security ForumInformation Security ForumThe Information Security Forum is an independent, not-for-profit association of leading organizations from around the world. It is dedicated to investigating, clarifying and resolving key issues in information security, and developing best practice methodologies, processes and solutions that meet...
- ISACA
- ISO
- IT riskIT riskInformation technology risk, or IT risk, IT-related risk, is a risk related to information technology. This relatively new term due to an increasing awareness that information security is simply one facet of a multitude of risks that are relevant to IT and the real world processes it...
- NIST
- Optimism biasOptimism biasOptimism bias is the demonstrated systematic tendency for people to be overly optimistic about the outcome of planned actions. This includes over-estimating the likelihood of positive events and under-estimating the likelihood of negative events. Along with the illusion of control and illusory...
- Project managementProject managementProject management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end , undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value...
- Reference class forecastingReference class forecastingReference class forecasting is the method of predicting the future, through looking at similar past situations and their outcomes.Reference class forcasting predicts the outcome of a planned action based on actual outcomes in a reference class of similar actions to that being forecast. The theories...