A rule-based system embedded with fuzzy logic for risk estimation

Different kinds of risks caused by various risk factors that a company needs to face are difficult to assess and manage since the decision makers cannot evaluate the risks systematically. A direct or indirect loss will occur as a result. Taking an express delivery service provider as an illustrative example, this study proposes a systematic approach embedded with fuzzy logic to assess the corporation´s risk level. The company´s risk problems are then classified into three major groups evaluated with fuzzy values in terms of the likelihood of occurrence and the severity of the consequences. By having an indication of the company´s risk level, decision makers can be better aware of any changes in the environment which affect the company´s risk level and hence are able to draw up preventive measures in a more rational manner.