Risk Evaluation System Using Object Measure-Value
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Solution Overview
Problem
Strategic planning in enterprises faces challenges in evaluating and managing uncertainties related to key performance indicators, as existing methods fail to effectively account for the impact of risks on financial outcomes.
Innovation Solution
A risk evaluation system and method that assigns risks to objects with specific threat levels, calculates object measure-values using probability and deviation-values, and integrates these into strategic management systems to improve prediction accuracy.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If traditional strategic planning methods are used to project key-figures, then planning simplicity is maintained, but measurement precision of risk evaluation deteriorates
Solution Approach 1:
The risk evaluation is segmented into distinct components: threat levels (e.g., high, medium, low), probability assessments, and deviation-values. Each key-figure is evaluated independently for multiple risks, allowing precise measurement without overwhelming system complexity. The segmentation enables modular processing of risk data.
Solution Approach 2:
The patent introduces a new dimensional framework by adding probability and deviation-value dimensions to traditional key-figure projections. Instead of single-dimension forecasting, the system evaluates key-figures across multiple dimensions including threat level, probability occurrence, and potential deviation, thereby enhancing measurement precision through multi-dimensional analysis.
2Measurement precision
If risk factors are incorporated into strategic planning, then prediction quality improves, but ease of operation deteriorates
Solution Approach 1:
The system performs preliminary risk assessments by pre-defining threat levels and their associated deviation-values before actual strategic planning occurs. Probability assessments are prepared in advance for various risk scenarios, allowing the planning process to incorporate these pre-evaluated risks without adding operational complexity during execution.
Solution Approach 2:
The patent introduces an intermediary computational layer that automatically processes risk data, probabilities, and deviation-values to adjust key-figure projections. This intermediary system handles the complex calculations and integrations between risk factors and strategic plans, shielding users from operational complexity while maintaining high prediction quality.
3Reliability
If probability and deviation-value calculations are performed, then reliability of risk assessment improves, but loss of time increases
Solution Approach 1:
The system implements partial action by allowing users to perform probability and deviation-value calculations selectively based on risk priority. Critical risks with high threat levels receive full probabilistic analysis, while lower-priority risks use simplified assessment methods. This approach maintains reliability for essential decisions while reducing overall calculation time through differentiated processing intensity.
Data Source
AI summary
A method, system and computer product for risk evaluation. A computer assigns a risk to an object. The object has an object measure-value and the risk has at least one threat level. The computer receives a probability of the at least one threat level. The probability refers to the object. The computer calculates the object measure-value by using the probability of the at least one threat level and by using a deviation-value that corresponds to the at least one threat level and relates to the object.