Methods of Risk ManagementRISK ANALYSIS METHODSRisk management can be divided into four steps: risk identification, risk assessment, risk control, and riskrecords. In recent years, studies have mostly focused on the risk assessment. Risk assessment is toanalyze and measure the size of risks in order to provide information to risk control. Four steps areincluded in the risk assessment.According to the results of risk identification and build an appropriate mathematical model.through expert surveys, historical records, extrapolation, etc. to obtain the necessary, basic informationor data available, and then choose the appropriate mathematical methods to quantify the information.Choose proper models and analysis methods to deal with the data and adjust the models according tothe specific circumstances.Determine the size of risks according to certain criteria. In the risk assessment extrapolation, subjectiveestimation, probability distribution analysis and other methods are used to obtain some basic data orinformation. Further data analysis often use following basic theory and methods: layer analysis method,mode cangue logical analysis method, Monte Carlo simulation, the gray system theory, artificial neuralnetwork method, fault tree analysis, Bayesian theory, an influence diagram method and Markov processtheory.We can divide the methods into qualitative analysis and Quantitative Analysis.Qualitative analysis:1. Fault Tree AnalysisFault Tree AnalysisFault Tree Analysis (Fault Tree Analysis, FTA) can be used for qualitative analysis of risk and can also be