Help! How Do You Price a Risk Assessment?
Is there a standard risk assessment? Decision makers assessing risk are confronted with a multitude of options and combinations of approaches that vary for different use cases. Better- communication of levels of assessment to clarify expectations and, educate users on appropriate use cases for different risk products is a common need across practitioners. Use cases span a spectrum, ranging from basic risk awareness and screening for early flags to detailed analysis to inform design. Similarly, risk assessment approaches may range from qualitative to quantitative, deterministic to probabilistic or empirical to analytical. There is no one-size-fits-all solution. For example, high level assessments based on coarse global datasets may be appropriate for early stage discussions and screening efforts but not well suited for project design enhancements which would benefit from high fidelity quantitative detailed assessments. Navigating this landscape is not straightforward, as it may not be clear which approach is most appropriate for a given use case. To address this complexity and foster greater understanding, classifying assessments according to specific needs and use cases is essential. This classification allows development practitioners to streamline their procurement, manage expectations, and enhance project efficiency while fostering a common language that promotes a shared understanding of risk among all stakeholders. This session will present much needed guidance in the form of a risk assessment taxonomy for practitioners.
Organized by: Arup and GFDRR/World Bank
