Risk Analysis & Risk
ManagementA Quality perspective – Abhilash Gopi.
What is a Risk?
Risk is a possibility that an unfavorable event will occur. It may be predictable or unpredictable.
Components of Risk
Risk has three components. These components need to be considered separately when
determining on how to manage the risk
• The event that could occur – the risk,
• The probability that the event will occur – the likelilhood,
• The impact or consequence of the event if it ocurs – the penalty (the price you pay).