Risk Assessment

Asset risk assessment relies on a clear line of sight to define the context and objectives of risk evaluation, ensuring alignment with organizational goals and priorities. Establishing this clarity is essential for identifying, prioritizing, and managing risks effectively. However, companies often face challenges in calculating risks, particularly in quantitative risk assessment. These include limited access to high-quality, consistent data, the complexity of building probabilistic models, and difficulties in accurately quantifying uncertainties. While qualitative assessments can offer insights, they lack the precision and actionable detail provided by quantitative approaches, requiring companies to invest in robust data systems and analytical expertise.

Risk Assessment Building Blocks

KPIs & Targets

Ensuring proper line of sight from business objectives to asset objectives defining the context of risk assessment processes.

Asset Criticality

Asset criticality used as part of quantitative assessment that feeds the quantitative assessment to preserve the complex assessment to highly critical assets only.

Performance Predictions

Asset performance predictive models are used to identify the probability of asset failures which coupled with consequence of failure defines asset risks

Consequence of Failure

Consequence of failure evaluates the impact of asset failures on operations, safety, environment, and costs.

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Risk assessment is the cornerstone of any effective decision-making framework. At Praxis, our extensive experience enables us to support you in developing and refining robust risk assessment processes tailored to your needs.