Risk is assessed in two different ways: quantitatively and qualitatively. The application and significance of each type of risk assessment relies on the nature of the goal and operation. For example, in security risk assessment for information systems, a quantitative approach compares the single loss expectancy of an asset calculated with an estimated annualized loss expectancy. The resultant figure should be a working estimate of the annualized loss expectancy. This allows a business to factor risks into their model using a purely mathematical approach. Risk assessment software and other risk assessment tools can greatly aid the process in these situations.

Some situations call for a more qualitative approach, such as in health risk assessment and army risk assessment. The first step in public health risk assessment is “hazard identification,” in which the adverse effects of a particular contaminant must be determined. After this is determined, quantitative risk assessment software can be used to calculate the dose-response analysis and the exposure quantification. Army risk assessment involves strategic qualitative assessments – such as enemy position and morale – as well as quantitative risk assessment, such as accuracy of weaponry.

As you can see, risk management is an integral facet of running a business, military campaign or public health initiative. Risk assessment is the first step to compensating for the potential hindrances in execution of any plan. By carefully examining and utilizing risk assessment software and risk assessment tools, you can devise contingencies for the worst case scenarios.