Consequence Analysis Task

A Consequence Analysis Task is a Risk Analysis Task that determines the consequence measure for each of the identified risks

• AKA: Consequence Assessment Task.
  • …
• Example(s):
  • a consequence analysis graphic:

    

• Counter-Example(s):
  • Financial Risk Assessment,
  • Risk Management Task.
• See: Risk Management System, Logical Consequence, Probability Analysis.

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References

2020

• (Sielearning, 2020) ⇒ https://sielearning.tafensw.edu.au/MBA/9791K/BusinessServices/lo/1207_020138_608K_03_wi/1207_020138_608K_0307_wi.htm Retrived: 2020-10-10.
  • QUOTE: Risk analysis is really a study of likelihood and consequences. The two basic questions to be answered are:
    • What is the likelihood of this event occurring as a result of the decision?
    • If the event occurs as a result of the decision, what would be the magnitude of its consequence?

The level of risk created by the incident is then determined by analysing the combined impact of likelihood and consequences.

(...)

Risk analyses are generally directed at the negative consequence of risks. The consequence measure therefore reflects the losses or undesired outcome that might arise. However, risk management is increasingly being applied to identify and prioritise opportunities as the risk associated with not exploiting an opportunity or embarking on a particular business strategy could be considerable. In many cases, the 'upside risks' are potentially more serious than the risk that bad events will occur (ie, the 'downside risk'). When considering opportunities, the likelihood measure need not change, as it will describe the chance that a benefit will arise. The consequence measure must, however, be adjusted.

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