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Risk Assessment and Scoring Methods
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Qualitative Risk Analysis
Methodology: Subjective assessment of risks using expert judgement. Measurement scale: Descriptive categories such as low, medium, and high.
Quantitative Risk Analysis
Methodology: Evaluates risks using mathematical models. Measurement scale: Numerical probability distributions and financial impact.
Failure Mode and Effects Analysis (FMEA)
Methodology: Systematically analyzing potential failure modes within a system. Measurement scale: Risk Priority Number (RPN), calculated as .
Layer of Protection Analysis (LOPA)
Methodology: A semi-quantitative risk assessment tool focusing on scenario-based risks. Measurement scale: Ranges from tolerable to intolerable risk based on frequency and consequence.
Risk Heat Map
Methodology: Visual tool that plots risks on a matrix based on severity and likelihood. Measurement scale: Colors indicate different levels of risk (e.g., green, yellow, red).
CARVER + Shock
Methodology: A prioritization tool for identifying vulnerabilities and protecting critical infrastructure. Measurement scale: Scoring system from 1 to 10 in six categories, plus 'Shock' value.
Decision Tree Analysis
Methodology: Graphical representation of potential outcomes from a series of related choices. Measurement scale: Expected monetary value of each decision path.
BowTie Method
Methodology: Visual tool that maps out risk scenarios from cause to effect. Measurement scale: Qualitative measure, identifying preventive and mitigative controls.
Monte Carlo Simulation
Methodology: Uses random sampling and statistical modelling to estimate possible outcomes. Measurement scale: A probability distribution of all possible risk outcomes.
Root Cause Analysis (RCA)
Methodology: Identifying the primary cause of a problem or risk. Measurement scale: Qualitative, aimed at the most fundamental level.
Value at Risk (VAR)
Methodology: Estimates the maximum potential loss over a specific time period at a certain confidence level. Measurement scale: Monetary value representing losses not exceeded X% of the time.
Risk Scoring Matrix
Methodology: Combines the probability of a risk event occurring with its impact. Measurement scale: Numerical scores assigned to reflect the combination of likelihood and impact.
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