Quantitative Risk Assessment Protocol
a) Conduct a risk assessment and vulnerability study to determine the risk
(b) Based on the top 5 risk factors - determine the value of assets under risk.
(c) Determine the historical attitude of the company @ risk exposure.
(d) Estimate the Annualized Rate of Occurrence (ARO) for each risk factor.
(e) Determine the countermeasures required to overcome each risk factor.
(f) Determine the Annualized Loss Expectancy (ALE) for each risk factor.
(g) Conduct the safeguard cost/benefit analysis by calculating the difference
between the ALE prior to implementing the countermeasure to the ALE after
implementing the countermeasures .
(h) Based on the above analysis, determine the return on investment using
Internal Rate of Return (IRR).
Litigation Risk Assessments
• Case Status – A short description of the current status of the proceedings,
anticipated motions and discovery, and settlement discussions or their
absence. This section also can address issues such as the existence of an
arbitration agreement and insurance coverage.
• ƒLegal Analysis – An assessment of any significant legal issues, including the
benefits and risks of obtaining a binding judicial precedent.
• ƒStrengths and Weaknesses – A succinct outline of the strengths and
weaknesses of your factual and legal position, including such factors as the
substance and impact of the evidence, the availability and quality of
witnesses, the sympathy or not of the adversary, the friendliness or hostility
of the tribunal, and the competence and experience of opposing counsel.
• ƒBudget – The anticipated legal budget.
• ƒPossible Results and Probabilities – An assessment of damages, including
possible results, probabilities and discounted values, and anticipated
litigation expenses. The case value assessment includes percentage estimates
based on various potential outcomes. Although percentages may imply more
precision than is justified, they convey information more clearly than
imprecise adjectives frequently used in describing litigation risk.
The Key To Success in the
PQ&A Top 10
1. What is the REAL time frame?
2. What are the REAL numbers?
3. Can we verify the data?
4. What is the Ripple Effect?
5. Who REALLY needs to be involved?
6. Who can/will make this decision?
7. Are we looking for unanimous or consensus?
8. Can this decision be overturned?
9. Do we have the resources and authority to
implement the decision?
10.What is our plan for reviewing the outcome?