The Role of Quantitative Risk Analysis QRA in Risk Management

Abstract

Abstract The industry through the years has learned that in order to make successfully decisions about risks it is not enough to practice minimal efforts from the single application of the law, it is necessary to involve the implementation of a management system risk and deeply rooted in the process of making process decisions in the company. The tool Quantitative Risk Analysis (QRA) is an essential part of the risk management system, as one of the main elements, and in the same time as one of the most objective and the tool to provide better information when making decisions. About QRA has published numerous papers, articles and studies but almost in the same way and usually explain on detail how to calculate the frequency and consequences of the events. Very few ones, if not almost none; can explain how combine these factors in order to produce specific measures of the risk. This paper tries to explain in a simple way the risk calculation and clarify the confusion between the practical meanings of some elements to QRA. Also, these paper attempts to define the process of QRA well done, the role and benefits in the process of making appropriate and intelligent decisions, looking for show by itself the complexity of the risk concept, and the fact that there is no a single or simple answer to the question, what is risk? Finally it is concluded that the risk management process supported by an adequate QRA process, is the starting point to ensure the integrity of the facilities, equipment and safe operations. In addition the QRA application process is damaged by several shortcomings that seriously compromise the usefulness of it in making decisions and have contributed for loss credibility. Consequently, one of the most important roles of the QRA is to ensure the provision of acceptable and credible measures risk in order to reduce the uncertainty of it, allow a more objective decision making as part of the process risk management.