Risk Analysis

Risk Analysis Methodology

Risk Analysis Methodology


Needless to say, risk analysis or business risk assessment has gathered crucial importance over the past few years. One of the prime reasons behind it is the increase in the number of accidents that have occurred in various business houses and offices during this period of time. It has become one of the most fundamental aspects of any organization to carry out effective business risk analysis programs. It is a very straight forward procedure that doesn't need any expert in the field to be carried out effectively. Any member of the staff or the employees can do it for the organization only if the simple things are not unnecessarily made complex. As a result of it, the potential threat factors may be identified and the organization can thus be provided with a safer atmosphere of work.

There are several risk analysis software applications and tools that might come to your assistance in this regard. the risk analysis software employ several risk analysis methodology. Actually, the overall process is quite simple. But often there is the need to employ varied kinds of risk analysis methodology in order to be in tune with the varied kinds of works and set ups of the organizations. Let's looks in to them.

The business analysis methodology can be broadly categorized into three broad classes. They are the · Qualitative methodologies. · Tree based techniques. · Dynamic system techniques.

First in line comes the qualitative approach of business analysis methodology. It involves a few steps such as the analysis of the preliminary risks, study of the hazards and operability (HAZOP), and the analysis of the failure modes and the consequent effects (FMEA/FMECA). The qualitative methodologies form one of the pillars in the risk analysis project management. Here the potential threat factors are detected that can cause some sort of accident at the place of work. Once the factors have been identified, they are analyzed separately. For each of the factors, measures of preventing the threat are recorded and implemented. It also gives the employer the scope of assessing as to which kinds of threat factors need to be taken care of more closely. This methodology often involves the use of frequency/consequence graphic diagrams where the identified risk factors are positioned as per their probable frequency in accordance with the nature of the organization. The several techniques like HAZOP and FMEA/FMECA are examination patterns that are often employed to this effect.

Another important methodology that is also often put to use in the risk analysis project management is the tree based technique. Under this form comes the several modes of analysis such as the fault tree analysis (FTA), cause - consequence analysis (CCA), safety management organization review technique (SMORT), event - tree analysis (ETA), and management oversight risk tree technique (MORT).

Besides there are also the methodology for the analysis of the dynamic systems. the several methods that are involved within this particular form of methodology are the GO method, Markov modeling, dynamic event tree analysis method, and the dynamic event logic analytical methodology are employed.