BNET Business Dictionary
Business Definition for: Risk Analysis
- the identification of risks to which an organization is exposed and the assessment of the potential impact of those risks on the organization. The goal of risk analysis is to identify and measure the risks associated with different courses of action in order to inform the decision making process. In the context of business decision making, risk analysis is especially used in investment decisions and capital investment appraisal. Techniques used in risk analysis include sensitivity analysis, probability analysis, simulation, and modeling. Risk analysis may be used to develop an organizational risk profile, and also may be the first stage in a risk management program.
Additional Resources
- Benchmarking Risk Analysis Practice In The International Water Sector
- Risk analysis in the water utility sector is fast becoming explicit. This paper describes application of a capability model to benchmark the risk analysis maturity of a sub-sample of eight water utilities from the USA, the UK and Australia. Our analysis codifies risk analysis practice and offers practical guidance as...
- White papers 2006-09-12
- Risk Analysis
- From the executive summary: ‘Most organizations have faced many challenges in dealing with safety, health, and environmental risks. The recent terrorist activities have only made the matters worse for organizations. Experts suggest that risk analysis requires scientists and engineers to undertake assessments to characterize the nature and uncertainties surrounding a...
- White papers 2003-01-01
- Whether to Strengthen?: Risk Analysis for Strengthening Decision-Making
- Based on recent practical experiences, this paper suggests that a relatively simple risk analysis combined with an equally straightforward structural failure analysis can be used to identify whether such structures are unsafe and constitute a risk to life; such an analysis can also identify both priorities for strengthening among a...
- White papers 2005-03-17
- Guidelines For Successful Risk Facilitating And Analysis
- This article presents guidelines for risk facilitating and risk analysis of cost estimates. These guidelines are based on the successes and lessons-learned from one company’s approach to risk-weighted cost estimates. Key issues relating to the identification and quantification of risks are addressed. In particular, the role of the risk facilitator...
- White papers 2000-04-04
- Risk Analysis & Risk Management: Evaluating And Managing The Risks You Face
- Almost everything we do in nowadays' business world involves a risk of some kind: customer habits change, new competitors appear, and factors outside your control could delay your project. But formal risk analysis and risk management can help you to assess these risks and decide what actions to take to...
- White papers 2008-01-01
- Portfolio Credit Risk Analysis Involving CDO Tranches
- Credit risk analysis for portfolios containing CDO tranches is a challenging task for risk managers. The paper proposes here a basis function approach for CDO tranche valuation and portfolio risk analysis at horizon, based on a multi-step Monte Carlo simulation model. The idea is to approximate the expected value of...
- White papers 2004-11-11
- Using Simulation Analysis to Improve Financial Decision Making
- How can healthcare leaders manage the uncertainty and risk inherent in their daily operations and planning? What goes into an effective risk analysis? This paper offers a simple, painless approach to answering these questions - simulation analysis. Simulation analysis can help executives to explicitly consider the uncertainty their assumptions and...
- White papers 2003-01-28
- Take A Risk (Part 2)
- Risks are also hardly static entities and constantly mutate to changing project conditions. Risk monitoring and control will help ensure that you are able to keep up these changes by constantly monitoring risks to discover changes in the impact of identified risks. The results of your risk monitoring and control...
- White papers 2004-05-19
- The Use of Risk Analysis by the U.S. Army Corps of Engineers
- The Corps of Engineers has used risk analysis techniques and ideas for many years. It has only been in the last decade, however, that risk analysis methods have been explicitly integrated into decision making. This integration has provided the risk-cost and risk-net benefit tradeoffs, and distributions of net benefits. These...
- White papers 2001-10-30
- Playing With Fire
- From the executive summary: 'The hardest part of risk, especially for CIOs, is that it does not provide concrete answers. Risk analysis will not tell which project to do. But, it will indicate, which ones fall into a certain level of risk and payoff.' Likewise, portfolio management also helps in...
- White papers 2003-07-01
- Human and Organizational Risk Modeling
- This white paper report describes a study of human and organizational risk within NASA's Team X, a conceptual mission design team. A grounded theory approach was used to develop computational models for risk analysis. Among the major findings in the analysis were identification of critical personnel, risk of turnover and...
- White papers 2004-05-01
- Risk Analysis And Control: Vital To Records Protection: Identifying And Preventing Risk
- Risk analysis determines and evaluates the exposure of vital records to specific risks. Its outcome provides the basis for protection planning and other records management decisions. A thorough risk analysis begins with the identification of threats and vulnerabilities to which vital records are exposed. Once identified, threats and vulnerabilities can...
- White papers 2005-09-01
- Risk Analysis and Management For Marine Systems
- Sources of risk to marine systems include equipment failure, external events, human error, and institutional error. Risk studies may be classified according to whether they focus primarily on assessment, management, or communication; these aspects of risk studies are described to prepare users and readers of this paper for performing risk-based...
- White papers 2004-03-27
- Finite Risk Reinsurance
- This special report is intended to provide further analysis of finite risk reinsurance. In doing so, it intends both to assist interested parties in their analysis of the buyers and sellers of this complex product group and shed light on, for the benefit of those same parties, why the report...
- White papers 2004-11-17
- Operational Risk Transfer
- All corporations face risks. Until recently, risks were identified within business units. Now the trend is to analyse risks on an enterprise-wide basis. Risk transfer to the insurance sector has been widely used for many years. Even though operational risks were not always classified in this way, mechanisms to transfer...
- White papers 2003-09-11
- Market Analysis for Risk Management and Regulation: An Artificial Intelligence Approach
- Purely statistical market analysis techniques for determining risk are incomplete because, in the real world, risk is effected by non-statistical phenomena such as news. Quantitative models can ignore such “shocks,” but analysts still need to explain their models in the face of such shocks. Risk must include the effects...
- White papers 2003-01-01
- Risk Analysis
- Risk analysis is an important discipline for assuring the safety, reliability and quality of products and processes. It is also an area subject to increasing regulatory pressures. This article discusses and compares the two most widely used tools for risk analysis. It talks about "desktop" or "blackboard" structured methods that...
- White papers 1998-10-01
- Risk Ranking For PHA, LOPA And Facility Siting-Part 2
- Risk ranking is a common methodology for making risk based decisions without conducting quantitative risk analysis. The basis for risk ranking is the risk matrix that has both a consequence and frequency axis. The product of consequence and frequency provides a measure of risk. Each consequence /frequency pair on the...
- White papers 2003-01-01
- Using Monte Carlo Simulation to Assess and Manage Risk In The Clinical Laboratory
- Managers often are asked to consider opportunities that involve risks. Traditional approaches to evaluating uncertainty fall short of providing a comprehensive view of possible outcomes. Risk analysis techniques using Monte Carlo simulation offer a more sophisticated approach that can help the manager better understand and manage those risks. This article...
- White papers 2003-01-01
- Central Arizona Project Risk Management 2003
- The mission of Risk Analysis is to provide Central Arizona Project CAP with identification and analysis of exposures of risk that could have significant impact on revenues, operations, employees or third parties. Coordination of efforts to lessen worker risk, reduce third party liability, minimize CAP's operational impact on the environment,...
- White papers
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