Two real life examples of Phase I Risk Based Decision Making
Oct 26th, 2010
Risk Based Decision Making
We would like to show you two examples of Phase I Risk Based Decision Making.
Phase I means that a preliminary decision is made based on Risk Prioritization alone. That is without financial comparative evaluations of the alternatives using CDA-ESM. In other words without evaluating the long term cost of the alternatives including upside and downside risks. When users include risks in long term cost estimates they refer to the procedure as risk adjusted cost
The first example relates to selecting a different transportation mode (or altering a status quo) for the personnel of a remote operation in a country where traffic accidents represent a very high and well known risk. As you will see none of the considered alternatives actually solves the problem (mitigates the risks below an Acceptability societal risk and/or Client’s specific Tolerance threshold.
The second example examines a rather complex process (over twenty elements) and defines a prioritized list of mitigative needs. By applying a Tolerance criteria it is possible to rationally, transparently and defensibly focus the attention on the most critical elements of the system. The result? Allotting mitigative funds in the most appropriate and efficient manner. see white paper
Tagged with: Acceptability, alternative, Analysis, assessment, based, Comparative, crises, crisis, decision, economic, Financial, making, management, operational, projects, risk, support, sustainability, tolerance
Category: Hazard, Mitigations, Risk analysis, Risk management, Tolerance/Acceptability