What are the different dimensions of identifying threats in Risk Analysis process ? In a company there is a probability of increase of 40% cost of raw material from present level of ₹ 10 crores. What shall be risk value

After identification of the risk parameters, the second stage is of analyzing the risk which helps to identify and manage potential problems that could undermine key business initiatives or projects. To carry out a Risk Analysis, first the possible threats are identified and then the likelihood that these threats will materialize is estimated. The analysis should be objective and should be industry specific. Within the industry, the scenario based analysis may be adopted taking into consideration of possible events that may occur and its alternative ways to achieve the given target. The first step in Risk Analysis is to identify risks or threats both existing and possible which may pertain to: Human - Illness, death, injury, or other loss of a key individual. Operational -Disruption to supplies and operations, loss of access to essential assets, or failures in distribution. Reputational - Loss of customer or employee confidence, or damage to market reputation. Procedural - Failures of accountability, internal systems, or controls, or from fraud. Project - Going over budget, taking too long on key tasks, or experiencing issues with product or service quality. Financial - Business failure, stock market fluctuations, interest rate changes, or non-availability of funding. Technical - Advances in technology, or from technical failure. Natural -Weather, natural disasters, or disease. Political -Changes in tax, public opinion, government policy, or foreign influence. Structural -Dangerous chemicals, poor lighting, falling boxes, or any situation where staff, products, or technology can be harmed. There is a probability of increase of 40% of price rise in the raw material. If this happens, it will increase the cost of production in the next year. So, the risk value of the cost of the production can be derived by the following formula: Risk value= Probability of event X Cost of event By, putting the values Risk value = 0.40 (Probability of event) x ₹ 10 Crores (Cost of event) = ₹ 4 Crores