The magnitude of consequences of an event, should it occur, and the likelihood of the event and its associated consequences, are assessed in the context of the existing controls. Consequences and likelihood may be determined using statistical analysis and calculations. Alternatively, where no past data is available, subjective estimates may be made which reflect an individual’s or group’s degree of belief that a particular event or outcome will occur.
To avoid subjective biases the best available information sources and techniques should be used when analysing consequences and likelihood.
Types of analysis
Because of the complexity and cost of analysis, in practice, qualitative analysis is often used to obtain a general indication of the level of risk. Later it may be necessary to undertake more specific quantitative analysis.
The methodology InterDynamics employs is based on the Zurich Hazard Analysis developed by Zurich Risk Engineering. It is similar to, and supportive of the framework provided by the Australian/New Zealand ISO standard for Risk management – Principles and guidelines (AS/NZS ISO 31000:2009).