Risk Analysis and Management: An Introduction

Abstract

Risk is the possibility of a hazardous event occurring that will have an impact on the achievement of objectives. Risk is measured in terms of consequence (or impact) and likelihood of the event. Qualitatively, risk is considered proportional to the expected losses which can be caused by an event and to the probability of this event. Quantatively, it is the product of probability of hazardous event and the consequences. General views about risk perception and risk communication are discussed that help decision making. Risk management and risk governance along with probabilistic risk assessment and alternative approaches to risk analysis are also discussed.