SYSTEM AND A METHOD FOR CALCULATING MONETARY VALUE OF RISK FROM A HIERARCHY OF OBJECTIVES

摘要

Disclosed is a system for converting ratio scale measures of risks to monetary value in a defined environment by a user over a communication network. The system includes a processor, an input unit coupled to the processor for receiving inputs from the user, a display unit to display processed information received from the processor, and a data storage for storing instructions related to risk events. The processor is configured to receive a list of risk events; receive a list of objectives associated with the risk events for assessing impacts to objectives; receive a list of causes associated with the risk events for assessing the likelihood of occurring of the risk; generate a ratio scale prioritized hierarchy of importance of objectives; generate a ratio scale prioritized hierarchy of likelihoods of causes of the risk events; generate a ratio scale prioritized list of risk events likelihoods; generate a ratio scale prioritized risks of risk events; receive input from the user with an estimated monetary value of at least one of the objectives in the hierarchy; and compute the monetary amounts of all the objectives by taking the ratio of other objectives ratio scale measures of importance to the ratio scale measurement of the objective of the hierarchy.