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2022 | Book

Risk Matrix: Foundations and Overview Read chapter Read first chapter

Risk Matrix

Rating Scheme Design and Risk Aggregation

Authors: Assoc. Prof. Chunbing Bao, Jianping Li, Dengsheng Wu

Publisher: Springer Nature Singapore

Book Series : Innovation in Risk Analysis

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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About this book

This book focuses on discussing the issues of rating scheme design and risk aggregation of risk matrix, which is a popular risk assessment tool in many fields. Although risk matrix is usually treated as qualitative tool, this book conducts the analysis from the quantitative perspective. The discussed content belongs to the scope of risk management, and to be more specific, it is related to quick risk assessment. This book is suitable for the researchers and practitioners related to qualitative or quick risk assessment and highly helps readers understanding how to design more convincing risk assessment tools and do more accurate risk assessment in a uncertain context.

Table of Contents

Frontmatter
Chapter 1. Risk Matrix: Foundations and Overview
Abstract
Risk matrix has been a widely used risk assessment tool for decades. Despite the convenience of risk matrix, it suffers some theoretical flaws. In this chapter, we introduce what is risk matrix accompanying with what should care in a risk matrix, the flaws of current risk matrix, and the main topics in this book.
Chunbing Bao, Jianping Li, Dengsheng Wu
Chapter 2. Different Types of Risk Matrices and Typical Applications
Abstract
In this chapter, we mainly display the fundamental elements of different kinds of risk matrix: the potential functions, the structure, and the risk matrix design rules. Besides, three typical applications are given to show how to use risk matrix in detail.
Chunbing Bao, Jianping Li, Dengsheng Wu
Chapter 3. Rating Scheme Design Methods
Abstract
Designing a rating scheme, i.e., determining the number of ratings used in a risk matrix and assigning different ratings to different cells, is an essential part of risk matrix construction. However, most of the related literature has focused on applying a risk matrix to various fields, instead of researching how to design risk matrices. In this chapter, we introduce several risk matrix’s rating scheme design methods, including some unwritten rules, utility function, Cox's axioms, and the sequential updating approach. And the comparison of these methods are analyzed.
Chunbing Bao, Jianping Li, Dengsheng Wu
Chapter 4. Risk Perceptions in Risk Matrix: Sources and Impact to Risk Matrix Design
Abstract
Risk matrix is essentially a qualitative risk assessment tool, and thus the design of risk matrix highly relies on person’s subjectivity. This kind of subjectivity reflects a decision maker’s perception towards a risk. In this chapter, we identify several kinds of risk perception in risk matrix that affect the final risk judgement and analyze their effect on risk matrix design.
Chunbing Bao, Jianping Li, Dengsheng Wu
Chapter 5. Risk Matrix Design Assessment: Criteria and Quantitative Indicators
Abstract
As we introduced in the previous chapters, several methods have been proposed to design risk matrix. However, there has no criterion that can used to evaluate which method is better. In this chapter, we proposed several risk matrix design assessment criteria and the corresponding indicators.
Chunbing Bao, Jianping Li, Dengsheng Wu
Chapter 6. Risk Matrix Aggregation: A General Framework
Abstract
Risk matrices have been proven as useful risk management tools, especially in the cases where data are not sufficient. Current usage of risk matrices in both literature and practice is related to single risk assessment. However, sometimes the decision makers care more about the overall risk consisting of several of single risks, which is in the scope of the aggregation of single risks measured by risk matrices. In this chapter, a general framework for risk matrix aggregation is proposed. The basic idea is to transform the risk matrices into other equivalents to operate the aggregation process. And there are four main steps in this framework.
Chunbing Bao, Jianping Li, Dengsheng Wu
Chapter 7. Risk Matrix Aggregation Methods: Introduction and Comparative Analysis
Abstract
Based on the general framework for risk matrix aggregation in chapter 6, in this chapter, three detailed methods, namely, fuzzy set, interval number, and probability density function, are proposed to aggregate risk matrices. The technical details are given and the three methods are compared.
Chunbing Bao, Jianping Li, Dengsheng Wu
Chapter 8. Three-Dimensional Risk Matrix: Theoretical Basis and Construction
Abstract
In this chapter, the traditional two-dimensional risk matrix is extended to three-dimensional one, considering the strength of knowledge as the third dimension. The three dimensional risk measure is constructed, and impact factors of the strength of knowledge are identified, and a multi-attribute decision-make method is proposed to measure the strength of knowledge. Finally, the three dimensional risk matrix is designed based on these preparatory work.
Chunbing Bao, Jianping Li, Dengsheng Wu
Chapter 9. Conclusions and Future Research
Abstract
This chapter presents the main conclusions of this book and future research.
Chunbing Bao, Jianping Li, Dengsheng Wu
Metadata
Title
Risk Matrix
Authors
Assoc. Prof. Chunbing Bao
Jianping Li
Dengsheng Wu
Copyright Year
2022
Publisher
Springer Nature Singapore
Electronic ISBN
978-981-19-1480-5
Print ISBN
978-981-19-1479-9
DOI
https://doi.org/10.1007/978-981-19-1480-5