Quantitative Risk Analysis

The quantitative risk analysis attempts to estimate the risk in form of the probability (or frequency) of a loss and evaluates such probabilities to make decisions and communicate the results. The quantitative risk analysis is often the preferred approach when adequate field data, test data, and other evidences exist to estimate the probability (or frequency) and magnitude of the losses. The use of quantitative risk analysis has been steadily rising the recent years, primarily due to availability of quantitative techniques and tools, and our ability to make quantitative estimation of adverse events and scenarios in complex systems from limited data. However, the use of quantitative risk analysis has been restricted to large scope risk analyses, because quantitative risk analysis is complicated, time-consuming, and expensive.