Risk science is a term used to encompass both risk assessment and risk management actions taken to reduce risk. Although historically risk science has focused on the large number of chemical substances present in the human environment, Today methods in risk science are widely applied in addressing other risk issues of importance to society, including those of a biological or social nature. 
Risks or negative events can result from uncertainty in financial markets, threats from project failures (at any phase in design, development, production, or sustainment life-cycles), legal issues, accidents, disasters , or events of uncertain or unpredictable root-cause. Risk sources are more often identified and located not only in infrastructural or technological assets and tangible variables, but also in human factor variables, mental states and decision making.
Intangible risks are those risks that have a 100% probability of occurring but are ignored by the organization due to a lack of identification ability. For example, when deficient knowledge is applied to a situation, a knowledge risk materializes. Relationship risk appears when ineffective collaboration occurs. Process-engagement risk may be an issue when ineffective operational procedures are applied. These risks directly reduce the productivity of knowledge workers, decrease cost-effectiveness, profitability, service, quality, reputation, brand value, and earnings quality. Intangible risk management allows risk management to create immediate value from the identification and reduction of risks that reduce productivity.
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities or positive events. In ideal risk management, a prioritization process is followed ,whereby the risks with the greatest loss (or impact) and the greatest probability of occurring are handled first, and risks with lower probability of occurrence and lower loss are handled in descending order. In practice the process of assessing overall risk can be difficult, and balancing resources used to mitigate between risks with a high probability of occurrence but lower loss versus a risk with high loss but lower probability of occurrence can often be mishandled. Ideal risk management also minimizes spending (or manpower or other resources) and also minimizes the negative effects of risks.
Tuesday, April 19, 2016