Risk assessment techniques

Conducting a risk assessment is one of the primary skills that each risk practitioner should learn. The results of a risk assessment help the management to prioritize the risk and decide on appropriate risk response strategies.

There are numerous techniques for performing a risk assessment, and none of the techniques is completely right or wrong. The risk practitioner should choose the training they feel is appropriate for their organization and makes the most sense to the stakeholders.

Here is a summary of major risk assessment techniques:

• Bayesian analysis: A statistical inference that uses prior distribution data to determine the probability of a result. This technique relies on the prior distribution data to be accurate in order to be effective and produce accurate results.
• Bow-tie analysis (BTA): Provides a diagram to communicate risk assessment results by displaying links between possible causes, controls, and consequences.
• Brainstorming...