Entity Risk Mechanics

Abstract

The actual theory of risk is based on phenomenological approach. However, it seems feasible to start thinking about Entities exposed to hazards in a similar way as about structural systems exposed to loads. Concepts of structural mechanics and structural reliability, common in design of constructed facilities, can be implemented into the risk theory, which, in this way, might be upgraded. As a result, new tools could be given to the project risk management enabling better risk predictions than available today. The aspects of the problem are demonstrated by comparing two specific Entities – a Building Structure exposed to loads, and a Company exposed to hazards. Important conceptual analogies between the two Entities are identified.