1 Fundamental principles of risk analysis
Risk is defined as the possibility of a loss. Mathematically, it is the expected value of an undesirable event.
Risk analysis, assessment, and management is based on three essential questions.
- What actions could go wrong?
- How likely is each action to happen?
- What are the consequences of the actions?
From these three fairly straightforward questions, a comprehensive risk assessment can be formulated. After this is completed, then careful decisions must be made as how to manage risk. This could be in terms of minimizing monetary loss or limiting exposure to radiation doses.
