Methodologies for Risk Assessment and Prediction in the Company or the Industry Chosen by the Student

Risk can be viewed as a state where there is a possibility of a loss but also a hope of gain. To realise the existence of a risk, one must be aware of both the gains and losses incurred. Increased number of natural disasters and companies having global supply chains to a higher extent, are both factors which have increased the number of risks that can affect an organisation’s supply chain negatively. Risk management is coordinated activities to direct and control an organization with regard to risk. A risk management processes therefore aims at mitigating negative impact of external and internal disturbances in order to avoid interruptions in production, product quality issues and financial losses. The process of risk assessment is one of the most important in risk management, and it is the risk assessment and methods of its conduct that this study is devoted to. The purpose of the study is a comparative analysis of methods for assessing and analyzing risks in companies working in the field of industrial production. This work consists of three chapters. The first chapter considers risk management in general and its use in industrial production, namely, what are the risks, the process of risk management and the specifics of its application in supply chains, and also a more detailed discussion of the process of risk assessment and possible methods of evaluation. The second chapter provides a detailed overview of four different assessment methods: HAZOP, FMEA, FTA and Monte Carlo simulations. The third chapter lists the criteria by which companies choose the risk assessment method, and compares the methods discussed in the previous chapter with these criteria.