Risk analysis is a technique to identify and assess for mitigation of risks at project initiation and during task execution. It is the systematic study of uncertainties and risks encounter in business, engineering, public policy, and many other areas. Risk analysis is really important to determined determined the various impacts and identify the risks which could lead . Risk managers start with risk analysis, then seek to take actions that will mitigate or hedge these risks.
In the same time this approach helps to define preventive measures to reduce the probability of occurrence and identify methods to avert possible negative effects on the effectiveness of the company to compete in this particular market.
As the advantage of this approach we can define it is clear to all sides, vendor, contractors and purchaser, what the risks are and who has ownership of each one. According to this approach 1st they identify the threats, Secondly to work out the likelihood of the threat being realized and to assess its impact. Thirdly start to look at ways of managing them. Finally once carried out a risk analysis and management exercise, it is worth to carrying out regular reviews