Segmenting risks in risk management

The paper describes a segmentation of risks to make each risk segment more manageable. The proposed approach is primarily intended to improve the confidentiality of risk simulations. The description of the approach is based on a logistics business process system which requires that its input is represented as a process graph. Each process is defined in terms of input and outputinput comprises general input as well as risksoutput comprises general output as well as impacts. The model takes into consideration internalas well as external input and output. Parameters can be used to define individual processes. Processes include functions that calculate new values of parameters and output on the bases of given input. Based on given tolerance levels for risks, impacts and process parameters, the model determines whether these levels are acceptable. The model assumes that parameters and functions are non-deterministic, i.e. parameters and functions may change in time. Although the approach is described on a very general level, each segment can be further subdivided into subsegments in order to include more characteristics of observed risks