Many facilities managers (FM) prefer to maintain a behind-the-scenes role in the buildings they oversee. If people can’t see the work you do, you’re doing your job well, right? In an emergency, however, FMs must run point because they know the space better than anyone, and are able to marshal resources quickly and get people where they need to go.
Source: United States Environmental Protection Agency (EPA)
- The peaks-over-threshold method (Oesterreichische Nationalbank, 2006)
Today’s blog offers an extensive understanding of risk analysis and evaluation. It’s a big one, but we assure you all the information is critical to grasping the full scope of this aspect of risk management.
Identifying the sources of risk is the most critical stage in your risk assessment process. You need to do this to manage the sources for pro-active risk management. The better you understand the sources, the better the outcomes of the risk assessment process, and the more meaningful and effective your management of these risks will be.
Under modern occupational risk management (ORM), the primary differences between risk assessment and risk measurement are:
With the increasing availability of big data and sophisticated software analytics, such as machine learning, modern risk assessments are automated and easy to use for people who have limited technical knowledge on risk management. The outcome of your risk assessment will become more accurate due to access to large-size samples. For example, a global corporate has developed a continuous risk assessment tool as an enhancement of its traditional risk assessment processes, through the inclusion of quantitative metrics, i.e. key risk indicators, to better assess the risk universe. ORM has moved away from traditional risk assessment towards risk-based strategic decision making.
Our Market Researcher, Jiaqi Sun, has put together research to provide an overview of commonly-used risk assessment approaches and processes to manage hazard, operational and strategic risks. Over the next series of blogs, we will drill down into: