Probabilistic risk assessment (PRA) is a systematic and comprehensive methodology to evaluate risks associated with a complex engineered technological entity (such as an airliner or a nuclear power plant) or the effects of stressors on the environment (probabilistic environmental risk assessment, or PERA). Risk in a PRA is defined as a feasible detrimental outcome of an activity or action. In a PRA, risk is characterized by two quantities: the magnitude (severity) of the possible adverse consequence(s), and the likelihood (probability) of occurrence of each consequence. Consequences are expressed numerically (e.g., the number of people potentially hurt or killed) and their likelihoods of occurrence are expressed as probabilities or frequencies (i.e., the number of occurrences or the probability of occurrence per unit time). The total risk is the expected loss: the sum of the products of the consequences multiplied by their probabilities. The spectrum of risks across classes of events are also of concern, and are usually controlled in licensing processes – it would be of concern if rare but high consequence events were found to dominate the overall risk, particularly as these risk assessments are very sensitive to assumptions (how rare is a high consequence event?). Probabilistic risk assessment usually answers three basic questions: What can go wrong with the studied technological entity or stressor, or what are the initiators or initiating events (undesirable starting events) that lead to adverse consequence(s)? What and how severe are the potential detriments, or the adverse consequences that the technological entity (or the ecological system in the case of a PERA) may be eventually subjected to as a result of the occurrence of the initiator? How likely to occur are these undesirable consequences, or what are their probabilities or frequencies? Two common methods of answering this last question are event tree analysis and fault tree analysis – for explanations of these, see safety engineering.

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