Risk Mapping Framework: Interplay between Complexity, Events, Probability and Outcomes as Determinants of Risk Level

This study develops a framework for determinants of level of risk (called risk mapping) for manufacturing firms. The study also applies the framework and analyses it specifically in manufacturing process. Drawing on in-depth analysis of manufacturing process of a product, risk level is determined in a small scale firm in Pakistan. Furthermore study also provides basis for determining the risk during every activity in process. The level of risk is identified with a combination of four dimensions: “probability”, “complexity”, “events” and “outcomes”. By analyzing the risk definitions, dimensions and scope, a parsimonious and a comprehensive definition of risk has been developed which further evolves into framework of risk. As a result, we can analyse risk in any kind of process, event or a system. Finally, study highlights different types of risks faced by workers.

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