ABSTRACT
Influence diagrams have been useful to illustrate interactions of factors and their impacts or consequences. This is also the case in assessing risks. By showing the interaction of risk events and their impacts in the influence diagram, it is expected that better understanding of how the risk events evolve and progress to the consequences can be achieved. This chapter provides step-by-step guidance to develop the influence diagram. Taking consideration of the frequency of occurrence and degree of impact of the risks, the critical risk events are identified and used to develop the diagrams with the help of professional experts. A case study is provided to demonstrate the process, including a discussion explaining the diagram in practical context.
