Simple Examples of Risk Analysis

Abstract

The chapter gives an overview on two complete risk analyses and sorts the conducted steps in the risk management and analysis scheme introduced in the textbook. To assess risks for public underground traffic systems, annual worldwide event frequencies and collective risks are computed. It is argued how to determine individual annual risk frequencies. The chapter discusses how this information can be used to derive most critical and relevant threat scenarios, which are candidates for more detailed analysis. The example is summarized by listing how the 14 risk management and analysis steps are supported by the conducted analyses. A further example is much different to all examples considered so far. It shows that the defined risk management and analysis steps are generic and can be applied also with benefit to the example credit card fraud. A basic ad-hoc sample risk assessment and management process is set up and compared and extended with the 14 step risk analysis and management process. It turns out that even rather basic terms are difficult to define, e.g., can a local individual annual risk per card (e.g. for credit card users in vivid urban areas in contrast to rural areas) be defined or is this a too advanced approach asking for too much data in the present context?