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Step 3: Prioritise and map the risks so that you can choose those most important to resolve [28].

Step 4: Plan how you will take action against the risks on this short list [28].

Step 5: On a regular basis, monitor progress on your action plans, terminate action plans for risks that have been adequately resolved, and look for new risks [28].

Frosdick (1997) also mentioned Strutt‘s, definition of the concept of risk analysis that is a seven stage process.

Systematic assessment (item by item - question every part of the system) [13].

Identification of risks [13].

Assessment of risks (frequencies and consequences) [13].

Establish acceptable/tolerable levels of risk [13].

Evaluate the risks. Are they acceptable? Can they be reduced and at what cost?

Determine whether the risks are as low as reasonably practicable [13].

Determine risk reduction measures where appropriate [13].

Risk Assessment & Evaluation

There are many ways and different techniques to evaluate what the risks are, what the effect they have on the project and what measures can be put in if the risks should occur [19]. Risk assessment is by most people divided into two areas, Quantitative Risk Analysis and Qualitative Risk Analysis.

Quantitative

In its most basic form the formula for risk quantification is: ―Rate of occurrence‖ multiplied by the ―impact of the event‖ = risk. Methods based on this method are often called ―expected value analysis‖ and include models like Annualized Loss Expectancy (ALM), the Courtney formula, the Livermore Risk Analysis methodology (LRAM) and Stochastic Dominance (Snyder, Rainer Jr., Carr 1991). The advantages of Quantitative Risk Analysis methodologies are that they are good at identifying the most critical areas that, if something happens, will have the largest impact on the project. There are also disadvantages to Quantitative Risk Analysis. When one measures the probability of damage to the project the quantitative approach tends to average the events leading up to a problem (Snyder, Rainer Jr, Carr 1991).

Qualitative

Qualitative methods attempts to express risks in terms of descriptive variables rather than an economic impact. These approaches are based on the assumption that certain threat or loss of data cannot be appropriately expressed in terms of dollars or pounds and that precise information is impossible to obtain. These methodologies include Scenario Analysis/Planning, Fuzzy Metrics and questionnaires (Snyder, Rainer Jr., Carr 1991). The advantages of Qualitative Risk Analysis methodologies are that they save time, effort and expense over quantitative methods. This is because assets do not need exact values in dollars or pounds nor do threats need to have exact probabilities. It is also a valuable methodology in identifying significant weaknesses in a risk management portfolio. There are disadvant本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。