Question

Discuss in your own words the application of risk management techniques needed to make a facility safer. Please give detailed examples.

Answer 1

Risk management is the evaluation, identification and establishment of risks which is followed by integrated and coordinated consumption of resources to monitor, minimize and control the possibility or influence of unfortunate parts or to maximize the achievement of chances. Risks can origin from several sources which include unpredictability in financial system, threats from project deficit, legal responsibilities, credit risk, natural consequences and causes, accidents, intentional attack from an conflicting or events of variable or uncertain root-cause. The events is categorized as negative events which can be distinguish as risks and other is positive events which are distinguish as opportunities. Various risk management standards have been evolved consisting the Project conduct Institute, the National Institute of Technology and Standards, actuarial system and standards. Ideal use of risk control techniques may not be possible. Some of them may consist trade-offs which are not admitted to the or person organization making the risk management decisions. Once risks have been known, they must then be permitted as to their potential severity of influence mainly a negative impact such as loss or damage and to the probability of occurrence. These quantities can be either simple to measure, in the case of the value of a lost building, or impossible to know for sure in the case of an unlikely event, the probability of occurrence of which is unknown. Therefore, in the assessment process it is critical to make the best educated decisions in order to properly prioritize the implementation of the risk management plan.