Risk Analysis Method Using Qualitative Quantitative Comparison
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Solution Overview
Problem
Current risk analysis methods in technical projects primarily focus on qualitative evaluations, failing to convert technical risks into quantifiable, economically relevant assessments necessary for accurate financial reporting, which can lead to significant economic damage and potential insolvency in large projects.
Innovation Solution
A method that integrates qualitative and quantitative risk evaluations, using a two-dimensional graph to compare and classify risks, assigning probabilities and monetary values, and defining permissible regions to identify unacceptable risks, allowing for transparent representation and action planning to mitigate these risks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If qualitative risk evaluation methods are used, then the assessment process is simple and easy to implement, but the economic relevance and quantifiability of risks are insufficient
Solution Approach 1:
The patent combines qualitative risk evaluation with quantitative economic assessment into a unified risk analysis method. The system integrates technical risk parameters (from FMEA and other qualitative methods) with economic parameters (costs, revenues, profitability) to produce both qualitative classifications and quantitative monetary valuations of risks, thereby maintaining ease of implementation while achieving economic relevance.
2Measurement precision
If quantitative economic assessment of risks is implemented, then the economic relevance and financial reporting accuracy are improved, but the complexity of the assessment process increases
Solution Approach 1:
The patent segments the risk assessment process into distinct modules: technical risk identification (using FMEA, failure trees, etc.), economic parameter determination (costs, revenues, profitability metrics), and integrated risk calculation. This segmentation allows each module to be developed and maintained independently, reducing overall system complexity while enabling comprehensive quantitative economic assessment.
Solution Approach 2:
The system employs universal data structures and calculation frameworks that can handle multiple types of risks (technical, economic, project-related) using the same quantitative methodology. The risk assessment model is designed to be multi-functional, accommodating various input formats and producing standardized economic outputs that can be directly integrated into financial reporting systems.
3Reliability
If comprehensive risk analysis including both qualitative and quantitative evaluations is performed, then the identification of unacceptable risks is improved, but the time and resources required for analysis increase
Solution Approach 1:
The patent implements preliminary action by establishing predefined thresholds for acceptable and unacceptable risks before the actual risk assessment is performed. The system pre-configures evaluation criteria, weightings, and decision rules based on historical data and expert knowledge, allowing the comprehensive qualitative and quantitative analysis to be executed efficiently without ad-hoc deliberations during the assessment process.
Data Source
AI summary
A method analyzes risks in a technical project for developing or manufacturing a technical system or technical components or a technical process, wherein the following steps are carried out in a risk identification process: a) provision or determination of a large number of qualitative evaluations of risks in the technical project; b) determination of a large number of quantitative evaluations of the risks; c) comparison of the qualitative and quantitative evaluations for each risk, as a result of which a comparison outcome is established for each risk; d) definition of a permissible region of comparison outcomes; e) classification of the risks that are situated outside the permissible region as unacceptable risks; f) analysis of the unacceptable risks in order to identify uncertainties in the risk analysis and further risks.