Towards mixed-mode risk management – A concept

Abstract

The paper concerns the risk management issue. Different approaches – static and real-time (dynamic) are reviewed, as well as their advantages and gaps. A broadly used static risk assessment/management (SRA/M) process is comprehensive, complex, invoked periodically, but it omits fluctuating risk factors and has limited ability to adapt itself to the changing risk picture. The paper proposes a mixed-mode approach. The SRA/M process is transformed towards the adaptive risk management (ARM) process. This adaptation is based on real-time risk management (RTRM) results gathered during a period between static risk assessments. All risk management processes are expressed in a pseudo-code. The method is exemplified by a simple but representative case study.