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- The 10 commandments for resilient design we propose below are based on risk management concepts. They should be considered as…
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especially when various layers of uncertainties surround alternatives, projects, operations, because decision-makers need to understand the:
The approach needs to cover:
Leading companies are turning to quantitative convergent, scalable enterprise risk management (ERM) methods in order to understand the consequences of potential business risks, and make informed decisions about how to prevent, manage, and mitigate impacts.
As an independent firm, Riskope delivers an impartial, third party evaluation of risks through a quantitative convergent, scalable enterprise risk management (ERM) method called ORE (Optimum Risk Estimates ©Oboni Riskope Associates Inc.). Our knowledgeable, senior professionals are fully engaged in all aspects of each project to provide clients with tailored attention, not pre-packaged studies.
Click here to download our White Paper entitled What You Need to Know About Risk Management Methods.
In order to carry out their studies Riskope develop, within the ORE framework, a Step by Step Quantitative Risk Assessment Framework (QRAF) approach encompassing the following Six Steps.
The results are delivered through a series of graphic representation (dashboards) and other communication means agreed upon with the client. This approach delivers the image of the full risk landscape of the system under consideration (corporation, project, operation, agency, national system, etc.)
Risk is quantified by gathering reliable data and information from public and private sources. This information is then modeled and analyzed, incorporating extensive experience-based knowledge, to determine probable outcomes. Our proprietary analytical models, which have been developed over twenty years of experience, are customized to each client.
Riskope’s study will start by studying all available documentation on each alternative. Obviously more provided pertinent extant material will translate in more accurate approaches for each alternative.
QRAF defines the boundary of the considered systems, splits them in elements amenable to analysis: the finer the split-ting, the more detailed the analysis. The final number of items generally ranges from less than 50 to several hundreds.
Hazard Identification is performed using Threat from/Threat to approaches leading to a unsorted General Hazard Scenario Register.
For each record of the Register, the QRAF foresees that one or more probability-consequences couple will be generated. Probabilities are evaluated using various available methodologies; Consequences are defined for each component, including uncertainties. The QRAF foresees the formulation of a blended consequence metric to be agreed in advance of any specific Risk Assessment with the Client.
“Total risk” will be defined for each record. Deliverable of this Step will be a General Risk Scenario Register, sorted by decreasing “total risk” or other selected filters.
The QRAF foresees an optional treatment of the prior results based on proprietary methodologies as follows: definition of the Client’s Tolerability Threshold for its operations. A ranking based on the intolerable part of risks will be developed to highlight critical areas of the operation and to guide recommendations on possible mitigations. This ranking leads to more effective risk based decisions.
As an option the QRAF foresees the probabilistic alternatives’ life-cycle evaluation “from cradle to grave” with CDA/ESM (Comparative Decision Analysis/Economic Safety Margin ©Oboni Riskope Associates Inc.). In this Step risk results from the prior steps will be integrated, meanwhile avoiding the pitfalls of other project evaluation methods such as NPV.
The QRFA also comes complete with a set of communication docu-ments which allow to properly inform all the stakeholders on the outcome of the Risk Assessment. Figure 2 displays a typical ORE dashboard where it is possible to understand what are the most critical sources of threats to the company, which products and which hazardous sectors are loaded with the largest potential losses (split by type of loss: physical, BI, environmental, etc.), where the highest logistic risks are and even how the media vulnerabilities are distributed within several divisions (projects, alternatives, operations, etc.) of a same company.
While all of Riskope’s work is tailored to meet the unique requirements of each assignment, chances are we have done work that is similar to your needs, and can provide you with an example of our work. Contact us – we are here to help.