Advanced Risk Analysis in Engineering Enterprise Systems

7

A Decision-Theoretic Algorithm for Ranking Risk Criticality

7.1      Introduction

This chapter presents a decision-theoretic approach for prioritizing risk management decisions as a function of risk measures and analysis procedures developed in the previous chapters. These measures are integrated into advanced ranking algorithms to isolate and prioritize which capabilities are most risk-threatened and qualify for deliberate management attention. This methodology enables decision-makers to target risk reduction resources in ways that optimally reduce threats posed by risks to critical capability outcome objectives.

7.2      A Prioritization Algorithm

Management decisions often involve choosing the “best” or the “most-preferred” ...