Probabilistic Risk Assessment

Risk can be categorized on the basis of the causes of risk or the nature of loss (consequences) or both. Risk is the potential for loss. Such a loss can be ultimately measured in economic terms, and thus, risk can be viewed as a potential economic loss. However, a more appropriate categorization is based on five broad categories that account for potential losses. These risk categories are Health, Safety, Security, Financial, and Environmental. 1 Definition of Risk 2 Categories of Risk 3 Applications of Risk Analysis 4 Probabilistic Approach to Risk 5 Steps in Conducting A PRA Keywords: failure data collection; risk analysis; probabilistic risk assessment; sensitivity analysis; uncertainty analysis