Risk

Risk assessment is the process used to understand the nature of a risk. This is the fundamental component of the risk management process as presented by ISO 31000.

'Risk Assessment based on Maximum Allowable Damage' led by Jaime Cadena (PhD).

According to the ISO risk definition: “Risk is the effect of uncertainty on achieving an organization’s objective”. As in any other risk assessment methodology, MAD provides a framework to help establish whether this effect is acceptable or not. This is related to a set of objectives established by the stakeholders. The objective in MAD assessing the performance of the system based on an estimate of the damage potential and a maximum damage threshold, while explicitly expressing the effect of uncertainty on the premises on which it stands. If the assessment is positive the objectives can be met, otherwise the system should be modified and reassessed.