Different Types of Risk Analysis Methods Applied by Organizations

There exist different types of risk analysis methods applied by organizations under different situations. The risk analysis methods are used as a way of identifying potential accidents as well as estimating the impact of the hazards. Some of the methods used in risk analysis include Failure Mode and Effect Analysis (FMEA), Fault tree analysis (FTA), and Management Oversight and Risk Tree (MORT). The three methods are having some distinct features and are applied under different situations and organizational levels. Failure Mode and Effect Analysis (FMEA) is the technique used in the identification and elimination of deviations or faults in a given system before a problem occurs. In FMEA, each function within the system is analyzed to determine the potential risk and develop strategies to mitigate them before they happen. It is an extensive and qualitative approach where the results are entered into a table. The results of the analysis using this method can include causes of effects, failure, severity, frequency, probability, and recommended actions. Fault tree analysis (FTA) is a method used to identify all the causes of unwanted events. In this approach, the risk analysts start through the identification of the adverse events and go on to determine all the various causes or events and thus considered as a top-down approach. The technique can be either qualitative or quantitative and results are portrayed in a logical diagram. Management Oversight and Risk Tree (MORT) is the method used to analyze the safety of a management system or an accident. The result obtained from MORT is portrayed in a logical diagram. The results primarily touch on the identification of the problems concerning risk management in organizations. In a facility that primarily performs welding operations, Failure Mode and Effect Analysis (FMEA) is appropriate. The reason is that the FMEA can identify any potential risk before it happens and thus reduces any chance of hazards or accidents. Besides, it can ensure that there is no occurrence of an unwanted event during the welding process and avoids wastages and injuries in the organization.