Calculating Risk Priority Number (RPN) for Risk Assessment
Question
You are the risk official in Bluewell Inc.
You are supposed to prioritize several risks.
A risk has a rating for occurrence, severity, and detection as 4, 5, and 6, respectively.
What Risk Priority Number (RPN) you would give to it?
Answers
Explanations
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A. B. C. D.A.
Steps involving in calculating risk priority number are as follows: -> Identify potential failure effects -> Identify potential causes -> Establish links between each identified potential cause -> Identify potential failure modes -> Assess severity, occurrence and detection -> Perform score assessments by using a scale of 1 -10 (low to high rating) to score these assessments.
-> Compute the RPN for a particular failure mode as Severity multiplied by occurrence and detection.
RPN = Severity * Occurrence * Detection Hence, RPN = 4 * 5 * 6 - = 120 Incorrect Answers: B, C, D: These are not RPN for given values of severity, occurrence, and detection.
In risk management, Risk Priority Number (RPN) is a method to prioritize risks based on their severity, likelihood of occurrence, and detectability. It is calculated by multiplying the three values, i.e., Occurrence, Severity, and Detection.
The formula for calculating RPN is:
RPN = Occurrence x Severity x Detection
In this case, the risk has a rating of 4 for occurrence, 5 for severity, and 6 for detection.
So the RPN would be:
RPN = 4 x 5 x 6 RPN = 120
Therefore, the correct answer is A. 120.
