Risk analysis
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=Abstract= | =Abstract= | ||
| − | This article may overlap with Risk Management but will attempt to discuss different approaches to analysing the risk when managing projects/portfolios/programs | + | This article may overlap with Risk Management but will attempt to discuss different approaches to analysing the risk when managing projects/portfolios/programs. |
| + | |||
Several tools will be mentioned and explained briefly, but (in order to allow the full use of the wiki) not be described in detail | Several tools will be mentioned and explained briefly, but (in order to allow the full use of the wiki) not be described in detail | ||
=Definition= | =Definition= | ||
| − | Risk analysis is the computational part of risk management where different aspects, variables and factors are used to estimate the risk involved with a specific feature, action, decision | + | According to the ISO Guide 73-2009, Risk analysis is the “Process to comprehend the nature of risk and to determine the level of risk” |
| + | |||
| + | ISO 31000 describes Risk analysis as the process which “provides an input to risk evaluation and to decisions on whether risks need to be treated, and on the most appropriate risk treatment strategies and methods”. | ||
| + | |||
| + | This process mentioned is the computational part of risk management where different aspects, variables and factors are used to estimate the risk involved with a specific feature, action, decision, condition ect. The outcome of this computation is a quantified number or percentage which can then be used as an evaluation criterion, determining either which option to select or if it is safe to proceed down the investigated path. | ||
| + | |||
=Main features of risk analyses= | =Main features of risk analyses= | ||
| − | =Different | + | :Input: |
| + | Purpose | ||
| + | Consequences | ||
| + | Likelihood / Probabilities | ||
| + | Existing control features | ||
| + | Effectiveness of existing control features | ||
| + | Causes of risk | ||
| + | Sources of risk | ||
| + | Factors influencing any of the above | ||
| + | Interrelations / Interdependence | ||
| + | Type of risk | ||
| + | Information available | ||
| + | Risk criteria | ||
| + | :Output: | ||
| + | Combined Likelihood / probability | ||
| + | Consequences | ||
| + | Confidence in: | ||
| + | Information Uncertainty | ||
| + | Information Availability | ||
| + | Information Quality | ||
| + | Information Quantity | ||
| + | Ongoing relevance of information | ||
| + | Limitations | ||
| + | =Different models used when analysing risk= | ||
| + | |||
=Benefits of analysing risk= | =Benefits of analysing risk= | ||
=How to develop a risk analysis= | =How to develop a risk analysis= | ||
=Reference= | =Reference= | ||
| + | ISO Guide 73-2009 – Risk Management Vocabulary | ||
| + | ISO 31000 - Risk management - Principles and guidelines | ||
| + | ISO 31010 - Risk management | ||
| + | International Journal of Project Management 32 (2014) - Vahid Khodakarami , Abdollah Abdi - Project cost risk analysis: A Bayesian networks approach for modelling dependencies between cost items | ||
Revision as of 01:56, 24 November 2014
Contents |
Abstract
This article may overlap with Risk Management but will attempt to discuss different approaches to analysing the risk when managing projects/portfolios/programs.
Several tools will be mentioned and explained briefly, but (in order to allow the full use of the wiki) not be described in detail
Definition
According to the ISO Guide 73-2009, Risk analysis is the “Process to comprehend the nature of risk and to determine the level of risk”
ISO 31000 describes Risk analysis as the process which “provides an input to risk evaluation and to decisions on whether risks need to be treated, and on the most appropriate risk treatment strategies and methods”.
This process mentioned is the computational part of risk management where different aspects, variables and factors are used to estimate the risk involved with a specific feature, action, decision, condition ect. The outcome of this computation is a quantified number or percentage which can then be used as an evaluation criterion, determining either which option to select or if it is safe to proceed down the investigated path.
Main features of risk analyses
- Input:
Purpose Consequences Likelihood / Probabilities Existing control features Effectiveness of existing control features Causes of risk Sources of risk Factors influencing any of the above Interrelations / Interdependence Type of risk Information available Risk criteria
- Output:
Combined Likelihood / probability Consequences Confidence in: Information Uncertainty Information Availability Information Quality Information Quantity Ongoing relevance of information Limitations
Different models used when analysing risk
Benefits of analysing risk
How to develop a risk analysis
Reference
ISO Guide 73-2009 – Risk Management Vocabulary ISO 31000 - Risk management - Principles and guidelines ISO 31010 - Risk management International Journal of Project Management 32 (2014) - Vahid Khodakarami , Abdollah Abdi - Project cost risk analysis: A Bayesian networks approach for modelling dependencies between cost items
