Risk assessment and the need for it

Every day of our lives, without realizing it, we hold in great danger.In our daily routine we just forget about it.Understanding of the risk assessment and often help to avoid a lot of problems, especially in business or industrial production.In general, the definition of this concept states that a process aimed at studying and identifying actions, situations or events that may adversely affect your performance when making decisions.

risk assessment, regardless of the direction, includes all aspects.Even those options to calculate the probability that theory unlikely.In business, it is assumed that a qualitative analysis is the detection of risk factors, identifying its sources and the subsequent stages or work, which will help him to reduce or even reduced to zero.In the early risk assessment it is considered to be the most important for any entrepreneur or investor, in fact it can fully show how dangerous the next project and what challenges await him.Experienced business people will say without a d

oubt that this indicator reflects the extent to which their project is successful.

Today there are many methodologies, tools and approaches for the study of this factor, but the base portion remains substantially unchanged and consists of the following steps:

- Identify potential areas of risk.

- Detection and evaluation of risks associated with the further activity of the company.

- Calculation of negative consequences.

- Reflection benefits while eliminating the risk and its consequences.

Quantitative risk assessment is present at each of these stages.Calculations followed by a numerical display can not only be seen in the percentage of probability of occurrence of any one of the events, but also to reveal the whole picture.

After summarizing the analysis assesses the degree of risk, which is the final stage and to determine the feasibility of the entire project or make a decision.About

base part we have talked, but now it is time to understand the existing methodology.The risk assessment is divided into only three major schools:

- Statistical methods.

- Analytical.

- Method of expert estimations.

Each of them has their own set of directions, technologies and approaches.It should be noted that each risk assessment using these techniques has its specific and thus results.Some are aimed at forecasting management decisions, others - to identify risk in the purchase of securities of the company, etc.Only the specific goal or objective setting allows you to select any one of the techniques or conduct a range of activities.In any case, if you want to see the objective data and not regret the decision, then the best option would be to turn to professionals.On the market today there are many expert firms this direction, offering their services in a different price category.