Risk Analysis
Abstract
Most organizations are aware that risks do not appear on a linear basis and for this reason risk cannot be identified and measured in this way. Assessing and understanding the interrelation of risk and their associated correlated impact is the real challenge. These complex relationships require a different set of tools. Through the use of tools to simulate multiple risk scenarios and correlating risk interdependencies the organization can begin to build an effective map of their risk landscape. The goal is to understand the cumulative impact of risks on performance and value in order to select the appropriate mix between risk retention and risk treatments.