Risk Analysis
Risk analysis is the ranking of risks based on their impact on business processes. A risk with high impact is ranked higher and given priority when it comes to addressing risks. More resources are allocated to high-risk areas.
Risk analysis results help with the prioritization of risk responses and the allocation of resources.
Risk analysis is the process of rating all identified risks in order to prioritize them. Risks with the highest rating and impact are addressed first. Generally, the following techniques are used to rank risks:
- Quantitative method
- Qualitative method
- Semi-quantitative method
The availability of the correct data for risk assessment is a major factor in determining which of the previously mentioned techniques is to be used. For instance, when a data source is trustworthy and dependable, an organization will prefer a quantitative risk assessment since it expresses risk in numerical terms, such as monetary value. The...
