Risk Management Analytics
Requirement: The assignment needs to Answer each question, and at least 250 words for each question, Reference.
Question 1: The trigger points in expanding the risk assessment process
After identifying, ranking and prioritizing risks using qualitative analytics techniques the analytics team would normally collaborate with decision makers to determine if additional risk assessment is necessary. In most cases, if additional assessment is required, quantitative analytics techniques will be used. In your view, what qualitative data, actions, events, or other circumstances could trigger a targeted quantitative risk assessment, considering that such an assessment is not only time consuming but also expensive for the organization.
Question 2: Quantitative risk assessment and CRISP-DM
Quantitative risk analytics requires the analytics team to have a strong understanding of the business and its strategic objectives. The analytics team must also be familiar with the data and have a clear vision of what modeling tools and techniques will provide decision makers with the best information to properly evaluate and deploy an educated analytics-based approach to addressing risks.
We have explored CRISP-DM for this purpose. In modeling your potential quantitative analytics-based strategy what phases of CRISP-DM would you be most concerned about (e.g. understanding the business risk, data gathering, interfacing the data with the chosen model(s), the actual selection of the appropriate model, the modeling process itself, and/or the defense of your position to top management for their evaluation and deployment)? How would you address your chosen concerns in your approach to selecting the appropriate quantitative model and performing the appropriate quantitative risk assessment.