Risk Assessment: Efficiency of Methods and Tools

Reducing or minimizing the risk for a specific opportunity, which is the main purpose of risk management, only happens sometimes. This is often achieved through planned and designed measurements with well-chosen and efficient assessment tools. The only way for organizations to justify the belief that they are “very effective” in risk management, particularly in the risk assessment phase, is to have measured the risks efficiently. Thanks to the accurate and reliable information they provide, risk assessment tools steer the institutions towards making effective decisions. Risk assessment methods vary considerably between organizations. Some organizations prefer qualitative risk assessment methods, while others use quantitative methods. Some methods are more efficient than others. This study addresses the techniques and tools frequently used in the risk assessment process; their advantages and disadvantages; and how the concepts, published standards, and frameworks affect the process.