Engineering Decision Making and Risk Management

Chapter 9Risk Management

Learning Objectives:

After studying this chapter, the reader will be able to do the following:

1. Identify the components of a risk management process (Section 9.1).
2. Describe the role of decision making in risk management (Section 9.1).
3. Identify similarities in risk management processes (Sections 9.1 to 9.4).
4. Use the potential problem analysis process to identify risks and select risk mitigation strategies (Section 9.2).
5. Describe how preventive actions, buffers, and contingency actions reduce risk (Section 9.2).
6. Identify the similarities and differences of precursors and warnings (Sections 9.5 and 9.6).
7. Describe two types of systems for monitoring warnings and precursors (Sections 9.5 and 9.6).
8. Describe the characteristics of good risk communication (Section 9.7).
9. Write effective risk communication messages (Section 9.7).
10. Identify possible causes of bad decisions (Section 9.8).
11. Suggest actions to prevent bad decisions (Section 9.8).
12. Describe the process of learning from failure (Sections 9.9 and 9.10).

“That's the risk you take.” In everyday conversation, the term “risk” means the chance that something “bad” will happen. There are risks associated with the use and operation of the products and systems that engineers design, so engineers must consider the relevant risks and strive to reduce them. Moreover, product development processes and other activities have risks, and those who plan and manage the activities must strive to reduce those risks. ...