ABSTRACT
This chapter is concerned both with determining objective possibilities and describing the factors that influence the risk. The idea that it is possible to comprehensively identify the nature of risks in any given situation is very difficult for many people to accept. An efficient and justifiable approach can be derived from Damage and Loss process models. Operational risks can be defined as risks that arise in Circumstances and Conditions that are intimately associated with the operation of an organisation. Operational risks are often not the subject of specific risk management effort possibly because they are almost always under the control of specialists and the knowledge required to understand them properly is not accessible to a non-specialist risk adviser. A Risk Factor may be defined as anything that can affect the value of either Frequency or Consequence. Heart attack Risk Factors are said to include obesity, lack of exercise and smoking habits.
