Risk Assessment and Management in Practice (PDF)

Technical Report from the year 2014 in the subject Business economics - Miscellaneous, grade: A, Robert Gordon University Aberdeen (Engineering), course: Oil and Gas Engineering, language: English, abstract: The unpredictable future commonly makes people feel afraid of or curious about what is on the other side of the door. Scientists try to use a scientific approach and systematic assessment to explain the mechanisms of the world to make the future more visible. However, these mechanisms are constantly changed by the interaction between people or objects. Furthermore, the uncertainty principle, which is also called the Heisenberg principle, gives a clearly concept. In simple terms, this theory describes how the position and momentum of a particle cannot be measured at the same time. This is because the measurement itself has the ability to influence the status of the particle (Becchi, CM & D'Elia, M 2007). Similarly, any system should be considered as a whole if we are to manage risk and uncertainty in the future. Since the early 1930s, marked by the global economic crisis that resulted from the dramatic fall in American stock prices, economists have contemplated the theory of risk growth. This report will introduce the concept of risk, the methods used to assess and manage risk, and the ways in which uncertainty influences the process, with a practical example at the end of the discussion.