Risk Management Methods
It is possible to prepare beforehand for the uncertainty and risks hiding in the operations environment with various risk management methods. Risk management is a systematic solution for recognizing and coping with the everyday risks. Risk management consists of multiple phases that aim to recognize and estimate risks and decrease their effect in different situations. To keep up with the rapidly changing risk environment it is necessary to perform risk management as a constant process that evolves and follows the changes in the operations environment.
Ramentor offers a solution for effective risk management with the versatile ELMAS software. ELMAS provides the possibility for overall and focused risk management through a single user interface.
Below is a list of the phases and methods used in risk management.
- Recognizing problems
- Modeling event chains
- Estimating event probabilities
- Estimating consequence severities
- Analytical risk calculation and risk simulation
- Risk estimation and analysis of alternative scenarios
- Action planning and execution
These phases differ significantly from each other, but all of them are essential. To support and enhance these work phases it is recommended to use different risk analysis methods. From the picture below can be seen the most typical methods used with each work phase. ELMAS as a tool covers all of these methods and also provides more extensive possibilities with its simulation function.