Describe the risk analysis approach and the steps in a

Risk analysis
Is a process undertaken to find and assess the risks to the individual, business and government agencies. These risks can be posed by natural or human made events. Risk analysis is done at every level and every department of a business or organization because a risk can threaten a business or its departments at any level and in any way. A complete risk analysis has following elements
Risk assessment - assessing what type of risk and its degree
Risk communication - communicating the risk to concerned department and management.
Risk management- prying out various alternatives to tackle the risk associated event.
And
Risk elimination :formulating ideas and policies to eliminate risk.
A risk can be at local, national or global level to any individual, business and public sectors organizations. Risk analysis is a continuous process. Risk analysis can be undertaken to produce qualitative or quantitative results. Qualitative when risk is identified and measures as colors, words etc. Quantitative when probability and degree of impacts of risks are in numeric forms. They are also called qualitative risk analysis and quantitative risk analysis (QRA) respectively
Steps in a Risk analysis
1. Risk identification and measurememt
The first step in a Risk analysis is to identify the risk theindividual, business or government agency is exposed to. You can't be prepared for an event that you have no idea about. To get prepared, first step is identifying the event or object that be risky in any way, and converting the risk in numbers to set up a base for further process. For instance :a sudden strike in the most important manufacturing division is a risk to reputation and business deadlines, hence we must estimate quantify the frequency of the strike I. E. For how many days, the concerned division will be idle due to strike.
2. Measuring Risk 's potential impact
Let's take strike example further, now that we have estimated the risk and its frequency which are strike and 20 days (say), we must measure the impact it is gonna have on our business. How many orders will be delayed, and what is loss that company is gonna bear (of rent of machines, factories etc.) all these must be converted in numbers though an estimated figure to help management to see the whole extent of impact.
3. Application of risk model
A risk model helps in calculating the impact on the output with the help of variables that we put into it. A process of estimating the impact on say net profit etc by using determined or estimated input variables. The results or outputs produced by it are generally in ranges only because the inputs are merely estimated numbers and other factors can also just be estimated.
4. Running simulations
There are various software solutions that helps in simulating the risk. I. E. By these programs we can estimate the impact more accurately. With the help of outputs generated in 3., more relevant information can be produced with the help of these programs.
5. Analyzing results
Producing outcomes, then using outcomes to run simulations to get a more complete picture of the impact it may have on the business, and then comes the analyzing of the produced data from simulators. No matter how many simulations are run, there is always a tendency of being unsure as to the results are complete are not. Various other tools are applied to make the results more relevant and vivid.
6. Coming to solutions.
After various tools and programs to assess the risks and reproducing the results in numeric forms and then running simulations just to eliminate them in a way that all the aspects of the situations are analyzed and prepared for in advance. For instance, a strike can have a clear impact on production line which would result in delay of completion of orders and the other impact it will have is the deterioration in reputation. All these processes helps in covering the all points of the concern, to minimize,mitigate or eliminate the threat. Now that the results are at the table of management, the concerned officers can take the decisions. For instance, If the reason of the strike is bad working environment, with the help of the data, corrective measures can be taken.