SYSTEM AND A METHOD FOR PROVIDING RISK MANAGEMENT

• US 20140350999A1
• Filed: 09/20/2013
• Published: 11/27/2014
• Est. Priority Date: 05/22/2013
• Status: Active Grant

• Current Assignee: Ernest Forman
• Original Assignee: Ernest Forman
• Inventors: Forman, Ernest, Hreljac, Edward
• Granted Patent: US 10,360,524 B2
• Time in Patent Office: Days
• US Class Current: 705/7.28
• CPC Class Codes: G06Q 10/06315 Needs-based resource requirements planning or analysis
• CPC Class Codes: G06Q 10/0635 Risk analysis of enterprise or organisation activities
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 10/06393 Score-carding, benchmarking or key performance indicator [KPI] analysis

Abstract

The present invention provides a system and a method for the risk management through ratio scale measures. The present invention identifies the risk of occurrence of events, develops ratio scale measures for impact of events and likelihood of events and deriving the risk of the events by multiplying the ratio scale measures for impacts with the ratio scale measures for likelihoods of the identified risk events. The ratio scale measures for impact of risk events is the sum-product of the ratio scale measures of the importance of the objectives and ratio scale measures of the impact of associated risk events on the objectives. The ratio scale measures for likelihoods of risk events is the sum-product of the probabilities of the identified causes times the probability of the risk events given the identified causes.

Claims

1. A method for measuring and mitigating risk events from the events occurring in a defined environment comprising the steps of:

identifying risk events from the events occurring in the defined environment;

developing ratio scale measures for the impact of the identified risk events;

developing ratio scale measures for the likelihood of the identified risk events; and

deriving the risk of events by multiplying the ratio scale measures for impacts with the ratio scale measures for likelihoods of the identified risk events.

2. The method according to claim 1 wherein the ratio scale measures for the impacts of the identified risk events further comprising the steps of:

defining objectives for optimal working of the defined environment;

associating the identified risk events with the objectives for detecting impacts of the risk events; and

deriving the ratio scale measurement of the impacts of identified risk events by the sum-product of the ratio scale measures of the importance of the objectives and ratio scale measures of the impact of associated risk events on the objectives.

3. The method according to claim 1 wherein the ratio scale measures for the likelihoods of the identified risk events further comprising the steps of:

identifying causes leading to occurrence of the identified risk events;

associating the identified causes with the identified risk events for detecting the vulnerability of the risk events to the identified causes; and

measuring likelihoods of the risk events by the sum-product of the probabilities of the identified causes times the probability of the risk events given the identified causes.

4. The method according to claim 3 further comprising the step of gathering and presenting information relating to the risk events, causes, objectives, relationship of the risk events with causes and relationship of the risk events with the objectives through information documents.

5. The method according to claim 3 further comprising the steps of:

defining controls for the causes, vulnerabilities and consequences of risk events; and

measuring the effectiveness of each control in reducing one or more causes, vulnerabilities, or consequences.

6. The method according to claim 3 further comprising the step of determining resource allocation for controls for reducing risk to the objectives of the defined environment.

7. The method according to claim 3 further comprising the steps of:

adding participants for measuring and mitigating risk events; and

defining participant roles for identifying risk events, causes and objectives for measuring and reducing risk to the objectives of the defined environment.

8. The method according to claim 3 further comprising the step of generating reports on measuring and reducing risk to the objectives of the defined environment.

9. A system for measuring and mitigating risk events from the events occurring in a defined environment over a communication network comprising the steps of:

a data storage accessible to the server; and

a processor connected to the server and the data storage, said processor configured to;

identify risk events from the events occurring in the defined environment;

develop ratio scale measures for the impact of the identified risk events;

develop ratio scale measures for the likelihood of the identified risk events; and

derive the risk of events by multiplying the ratio scale measures for impacts with the ratio scale measures for likelihoods of the identified risk events.

10. The system according to claim 9 wherein the processor for developing ratio scale measures for the impacts of the identified risk events further configured to:

define objectives for optimal working of the defined environment;

associate the identified risk events with the objectives for detecting impacts of the risk events; and

derive the ratio scale measurement of the impact of identified risk events from the association of defined objectives with the identified risk events.

11. The system according to claim 9 wherein the processor for developing ratio scale measures for the likelihoods of the identified risk events further configured to:

identify causes leading to occurrence of the identified risk events;

associate the identified causes with the identified risk events for detecting the vulnerability of the risk events to the identified causes; and

measuring likelihoods of the risk events by the sum-product of the probabilities of the identified causes times the probability of the risk events given the identified causes.

12. The system according to claim 11 wherein the processor is further configured to gather and present information relating to the risk events, causes, objectives, relationship of the risk events with causes and relationship of the risk events with the objectives through information documents.

13. The system according to claim 11 wherein the processor is further configured to:

define controls for the causes, vulnerabilities and consequences of risk events; and

measuring the effectiveness of each control in reducing one or more causes, vulnerabilities, or consequences.

14. The system according to claim 12 wherein the processor is further configured to determine resource allocations for controls for reducing risk to the objectives of the defined environment.

15. The system according to claim 12 wherein the processor is further configured to:

add participants for measuring and mitigating risk events; and

define participant roles for identifying risk events, causes and objectives for measuring and reducing risk to the objectives of the defined environment.

16. The system according to claim 12 wherein the processor is further configured to generate reports on measuring and reducing risk to the objectives of the defined environment.

17. A computer program product embodied in a non-transitory tangible media comprising:

a computer readable program codes coupled to the non-transitory tangible media for soft error recovery during processor execution, the computer readable program codes configured to cause the program to;

identify risk events from the events occurring in the defined environment;

develop ratio scale measures for the impact of the identified risk events;

develop ratio scale measures for the likelihood of the identified risk events; and

derive the risk of events by multiplying the ratio scale measures for impacts with the ratio scale measures for likelihoods of the identified risk events.

18. The computer program product according to claim 17 wherein the computer readable program codes for developing ratio scale measures for the impacts of the identified risk events further configured to cause the program to:

define objectives for optimal working of the defined environment;

associate the identified risk events with the objectives for detecting impacts of the risk events; and

derive the ratio scale measurement of the impact of identified risk events from the association of defined objectives with the identified risk events.

19. The computer program product according to claim 17 wherein the computer readable program codes for developing ratio scale measures for the likelihoods of the identified risk events further configured to cause the program to:

identify causes leading to occurrence of the identified risk events;

associate the identified causes with the identified risk events for detecting the vulnerability of the events to the identified causes; and

measuring likelihoods of the risk events by the sum-product of the probabilities of the identified causes times the probability of the risk events given the identified causes.

20. The computer program product according to claim 19 wherein the computer readable program codes further configured to:

define controls for the causes, vulnerabilities and consequences of risk events; and

measuring the effectiveness of each control in reducing one or more causes, vulnerabilities, or consequences.