A Simple Proposal for Qualitative and Quantitative Risks Analyses Integration (Part 4)
In our last installment, we had three curves: red (the original analysis, without the events), blue (with the events and no mitigation) and green (with risks and mitigation plans). You probably considered that our reality is the green curve. Sadly, it is not. We are stuck between blue and green. We made response plans, and we have residual risks mapped by the green curve.
Are your plans always successful? Can you absolutely guarantee that your actions will work? No, you cannot. At best, you can do your part and be efficient. However, there is always a possibility that things will not turn out for the best. Join me as we continue with our example and understand the management of risk as our project evolves…
Bulletproof? Says Who?
Let’s look at a classic response plan. There is a possibility that a worker that may be injured during operations will sue us. We get insurance and pay a fee to reduce our exposure. We have transferred the risk to a third party (at least the financial extent). This plan is easy to implement. There is no reason I can think of that will make it difficult to execute. We could even say it is a done deal if we have the budget. Right? Okay.
However, I cannot insure the company’s personnel on the manufacturer’s site. Maybe all of the companies will veto this, and we will have to deal without it. That info will only be
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