Business Risk in Early Design: A Business Risk Assessment Approach

Abstract

Nine out of ten new businesses fail within their first two years. Business failures not only affect a company, but may impact a country's economic performance. Risk assessment is an area of significant concern for numerous businesses in today's capricious marketplace, because consequences resulting from such risks can seriously affect visibility of business operations, profitability, quality of service, and convenience. This article presents the Business Risk in Early Design (B-RED) method for preliminary risk assessments based on historical business failures. A B-RED preliminary risk assessment of Arthur Andersen is discussed as an illustration of the methodology.

Department(s)

Engineering Management and Systems Engineering

Keywords and Phrases

Business; Component; Failure Mode; Function; Risk Analysis

International Standard Serial Number (ISSN)

1042-9247; 2377-0643

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2012 American Society for Engineering Management (ASEM), All rights reserved.

Publication Date

01 Mar 2012

Link to Full Text

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