By E.A. Heinrichs
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In contrast, risk does not have this clear relation to events. A risk is used to characterize a certain state of the world, or a consequence, that is (1) unwanted, (2) uncertain, and (3) in the future. But it is the consequence rather than the risk that is caused by the event, and the risk exists whether or not the event takes place. The consequence is uncertain until the event happens, and it remains unwanted. Once the event has happened we know whether the risk manifested itself, but it still remains (equally) uncertain for the next time.
Risks that have manifested themselves as unwanted consequences). Both types of risk management can make use of a wide array of qualitative and quantitative techniques, addressing both the technological and the human parts of the system. 1 Prospective Risk Management Prospective risk management is most frequently used to reduce the risk potential of a particular plant or process, even if no specific problem appears to exist. There is always the possibility of an unexpected event, either as a human erroneous action or as something that happens in the system, even though this may not be evident from conventional measures of safety performance.
And secondly, while most management control systems deal with something which is continuously present and which therefore can be assessed or evaluated on a regular basis, risk management systems deal with something which is not in any reasonable sense a continuous quantity. 1 Managing Non-Occurrence of an Event In most cases control is concerned with something that happens, and the aim is indeed to make it happen. It can be to improve quality of a product, to improve production in terms of units per time (equal to reducing the time it takes to produce a unit), to improve efficiency (equal to reducing the amount of resources needed to produce a unit), etc.