Risk Analysis in Managerial Process and Fuzzy Approach

One of the most important steps in managerial process is the risk analysis. While various methods for conducting the risk analysis exist, in certain conditions only subjective qualitative approach can be used. The typical reason is the lack of input quantitative data. Methods of fuzzy logic can provide a convenient way to conduct risk analyses. The article describes an application of fuzzy logic and fuzzy approach into risk analyses and into risk management process. All needed requirements for using this approach are described. The main advantage of using fuzzy approach is limitation of subjectivity in risk assessment. That can provide basis for regular repeating of risk analyses thus, efficient control system can be created instead of formal occasional risk analyses. Article also describes recommended modification of threat identification process to maximize mutual effect when applied together with this kind of risk analyses.