We’ve come to the end of Jiaqi Sun’s review of enterprise risk assessment methodologies. All that’s left to do is sum up what we’ve discussed, with potential recommendations.
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.
For both quantitative and qualitative approaches, a wide range of techniques exist as illustrated in the chart below (please refer the American Bureau of Shipping (2000) for more details). Each technique has its own: