Question

Based on your knowledge of the following four (4) risk models: Standard Risk Model, , Simple Risk Model, Cascade Risk Model and Ishikawa Risk Model, Discuss the use of risk models. Which ones do you think are the most useful? Are there other risk models you've known or applied in your work to appreciate? If so, please discuss.

Answer 1

Use of risk models are for identifying the risk and its influence on the work, organisation or business. Risk models identify the source of risk, its impact and defining measures for preventing the risks or taking corrective measures. The most useful risk model is Ishikawa model of risk management. The Ishikawa model identifies different sources of risk, the effect they have in different ways on the organisation or a project, finding preventive measures to avoid any harmful consequences from the risk and corrective measures if the risk event occurs. Risk models that have been applied at workplace are Cascade model with identification of risk, its influence on the project and its consequences on the project outcomes. It is used for doing risk analysis for understanding the effect of the risk and ways in which they can effect any task, project or business. Environmental risks are an example that can lead to lower sales of a product leading to less revenue and additional costs for selling the product.