Relative Risk

Definition(s)



Relative Risk

Measure of risk that represents the ratio of risks when compared to each other or a control.

Source:API STANDARD 780, Security Risk Assessment Methodology for the Petroleum and Petrochemical Industries, First Edition, May 2013. Global Standards

Relative Risk

Measure of risk that represents the ratio of risks when compared to each other or a control.

Sample Usage: Although the site is prone to frequent low level flooding, the relative risk posed by a hurricane is greater than that posed by a flood.

Annotation:

  1. The relative risk value of a scenario is meaningful only in comparison to other similarly constructed risk values.
  2. Due to inherent uncertainties in risk analysis, relative risk may be more useful to decision makers than risk measured in expected annualized dollars lost or lives lost.
  3. Using relative risk might convey the necessary meaning to decision makers while avoiding the disclosure of sensitive or classified information.

Source: DHS Risk Lexicon, U.S. Department of Homeland Security, 2010 Edition. September 2010 Regulatory Guidance