Risk Prioritization for a Power Supply System Using EMV Method

Risk Identification, analysis and prioritization are three basic and vital steps in risk management process of each industrial project. These risks have to be identified, quantified and prioritized so that proper mitigation methods can be applied. The present paper deals with identifying a power supply system using Functional Block Diagram (FBD) method. Then, Fault Tree Analysis (FTA) is employed to recognize risks roots. Results of these methods, indeed, are used as input to Failure Modes and Effects Analysis (FMEA). Using FMEA, probability and impact of identified risks are determined. Ultimately, Expected Monetary Value (EMV) method is exploited to quantify all risks based on their monetary impact on the system and their corresponding return on investment (RIO) so that risks can be prioritized.