What is Quantitative Risk Analysis?
Quantitative Risk Analysis is a rigorous and comprehensive method of assessing risk. It uses verifiable data to make a numerical prediction of an event’s likelihood and the severity of its impact. Compared to a Qualitative Risk Analysis, which ranks likelihood and consequence on a graduated scale (e.g. minor, major or critical consequence or an unlikely, likely, probable likelihood) to determine the risk ranking, a Quantitative Risk Analysis assigns a numeric value to probability and consequence to calculate a numeric risk value. Common quantitative risk analyses include Layer of Protection Analysis (LOPA), Probable Loss of Life (PLL) and Cost-Benefit Analysis.
Why Do a Quantitative Risk Analysis?
One of the most important decisions a company makes is how and where to deploy resources to minimize negative outcomes. Quantitative Risk Analysis allows an organization to engage in risk-informed strategic decision making to avoid negative outcomes and maximize business success. In short, Quantitative Risk Analysis can help:
- Increase decision making confidence
- Accelerate risk management awareness and maturity
- Optimize operations and maintenance resource efficiency
- Drive systematic, continuous improvements of control performance
How VelocityEHS Can Help
VelocityEHS Quantitative Risk Analysis software provides a single view of risk and controls so you can eliminate spreadsheets and versioning headaches. Watch any potential risks at a glance and dissolve risk silos by bringing together risks from across your business in a single easy to understand view. Even better, our software allows you enter data once and then choose the level of analysis you want to perform, from pictorial, qualitative, LOPA or quantitative with fault & event tree support, cutting analysis costs dramatically. All risk data is available via reporting and dashboards showing at a glance the performance of every element of your risk & assurance process, enhancing transparency, collaboration, decision making confidence, regulatory compliance & continuous improvement.
Quantitative Risk Analysis is part of our broad range of Risk Management solutions. To see the full set of features, click here.
|Integrated hazard & risk identification with fully customizable visualizations & analysis
|At-a-glance performance dashboards for organizational visibility & transparency
|Easy bowtie analysis switching between qualitative & quantitative mode
|Generate bowties, Layer of Protection Analysis (LOPA), Probable Loss of Life (PLL), and Cost-Benefit Analysis automatically from bowties in a single platform
|Common library of causes, controls, consequences, and other factors drawn from all models into one place
|Wide range of auto calculated risk ratings, including Initial, Inherent, Current and Proposed
|View data through a variety of built in safety case reports, or export to Excel|