Different Terms associated with Risk Analysis
Exposure: exposure is the
susceptibility to loss or a perception of a threat to an asset or asset
production process, usually quantified in rupees.
Threat: threat is the
combination of the risk, consequences of the risk, and the likelihood that the
negative end will take place.
Duration
of consequences: duration of consequence affects its severity. Like not
usage of generator for one week would cause low productivity up to 2% and for
more than one month may cause loss to more than 10% - 20%.
Absolute
risk is a term for the threats and consequences without considering controls
likely to be present and operating.
Risk can be of low, medium, or high. When management
speaks of risk in this relationship, it means the consequences would be severe,
average or negligible.
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