I’d like to focus on the Fault Tree Analysis (FTA), which is a method used to explore the causes of system level failures. This method consists of two elements which are “events” and “logic gates.” The Fault Tree Analysis is an easier method than the Failure Mode and Effects Analysis (FMEA) since it analyzes all possible system failures of an undesired event. The purpose of FTA is to effectively identify the causes of system failure and mitigate the risks before it takes place. Fault Tree Analysis is used in the pharmaceutical industry, in addition to other high-hazard industries.

Using brainstorming as a method for identifying risks promotes participation among all members of a project team since it is a more free and open tactic. It may lead to a team that is more dedicated to managing risk over the course of the project. The creativity and risk prevention ideas that can start with open dialogue may be beneficial to the team dynamic and the project as a whole.

A risk management strategy I discovered through a scholarly search involves the global supply chain. They revamped the definition of risk based on contingency possibilities, gains verses losses, and the severity of affect. The global supply chain risk management system focuses on first identifying and evaluating risks in an effort to find the strategy within their arsenal that contends best with the issue at hand. Risk management plans all have their focus on an amplified portion of one of the following characteristics; cost savings, losses, probability of success, the efficacy and rapidity of the event, how fast losses accrue, the time allotted to the detection of the risks, how often risked states are active, and the exposure of risks to individuals and/or companies involved.

For further reading, Reference:

Manuj, I., & Mentzer, J. T. (2008). Global supply chain risk management strategies. International Journal of Physical Distribution & Logistics Management.