Risk Analysis subjectivity
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This paper explores the level of subjectivity involved in the perception of risk and whether because of this subjectivity statistics provide the only reliable tool for risk analysts.
To fully explore this subject we first need to ascertain what is meant by risk. A risk is made-up of three components, an asset, a threat and the vulnerability between the asset and the threat. To assess the extent of a risk, the value of the asset, the likelihood of the threat manifesting and the vulnerability between the two are taken into account. This is more fully refined to threat i.e. what could happen?, impact i.e. how bad could it be?..