Risk Assessment

  • Hing Kai Chan
  • Xiaojun Wang


Risk is defined by ISO 31000 (2009) as the effect of uncertainty on objectives. Generally, risks may result from different circumstances such as uncertainty in financial markets, supply chain disruptions, project failures, security breaches, quality and safety incidents, environmental causes and disasters as well as deliberate attack from an adversary or unpredictable root cause. It is therefore important to identify and assess risks in order to enable them to be understood clearly and managed effectively. According to Flanagan and Norman (1993), risk management is a process which aims to identify and quantify all risks to which the business is exposed, so that a conscious decision can be made to manage the risks. Norman and Jansson (2004) considered risk management as understanding the risks and minimising their impact by addressing, for example, probability and direct impact. Depending on whether the risk management is assessed under the context of supply chain management, engineering, financial portfolios, information technology, project management, or public health and safety, the definitions and methods for risk management can vary widely. Risk management often includes risk identification, risk assessment, risk prioritisation and risk mitigation strategies as displayed in Fig. 2.1.


Supply Chain Risk Assessment Analytic Hierarchy Process Environmental Impact Assessment Environmental Risk Assessment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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© Springer-Verlag London 2013

Authors and Affiliations

  1. 1.Norwich Business SchoolUniversity of East AngliaNorwichUK
  2. 2.Department of ManagementUniversity of BristolBristolUK

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