Quantitative risk analysis attempts to numerically determine the likelihood of unwanted events occurring and to assess the magnitude of the losses and impacts to people, the environment, organisation and the community as a whole.
The benefit of numerical data is that it enables further comparative tools to be implemented, which can be especially useful when assessing the financial implications of implementing suggested risk controls and undertaking detailed cost benefit analysis.
The quantitative risk analysis process is generally facilitated by determining:
- Risk factors;
- The value of the assets under threat;
- The annualised rate of occurrence (ARO);
- Risk control measures;
- Annual loss expectancy; then
- A review of the control effectiveness is completed, including a cost/benefit analysis to determine the residual risk score.
There are a number of specialised risk software products on the market which assist in calculating and modeling risk issues.
To effectively facilitate Quantitative Risk Analysis Workshops, USSA Global Consultants utilise the latest RiskView Pro software, providing integrated real-time risk management solutions. The RiskView Pro solution is intuitive and easy to use; along with quantitative risk analysis, the software simultaneously populates an organisation’s Risk Register, and has the functionality to undertake detailed HAZOPS and provide graphical analysis of complex risk in the form of bowties.