Risk Analysis

Risk analysis has three elements: risk assessment, risk management, and risk communication. There are many interactions and overlaps between these three main elements of risk analysis. Risk analysis measures the potential and magnitude of any loss from or to a system. If there are adequate historical data on such losses, the risk analysis can be directly measured from the statistics of the actual loss. This approach is often used for cases in which data on such losses are readily available. Probabilistic risk assessment is a systematic procedure for investigating the ways in which complex systems are built and operated. The PRAs model how human, software, and hardware elements of the system interact with each other. Preparing for a PRA begins with a review of the objectives of the analysis. Among the many objectives that are possible, the most common ones include design improvement, risk acceptability, decision support, regulatory and oversight support, and operations and life management.