Risk Analysis

All products inherently entail a certain amount of risk.  There is no such thing as a risk free product.  To know and understand the risk associated with your products is the first step in performing a risk analysis.   This process will allow you to establish a proactive litigation prevention program and a litigation management program.

A simple definition of risk is the likelihood or probability that an accident of a given severity will occur:  accident events of a specified severity (numerator) divided by total opportunities for such events (denominator).

A risk estimate for a product can be quantified by determining the number of injuries of given severity that have occurred and the amount of exposure within which those injuries occurred.  In practice, difficulties arise in specifying both components of the risk function.  Locating, analyzing and verifying the accident statistics coupled with computing exposure data can be a daunting task for the uninitiated.  Product Liability Solutions, LLC can assist your company in developing this valuable risk estimate for your product line.

The second step in risk analysis is to compare your risk estimate with other similar activities or products.  This requires obtaining and analyzing risk estimates of the other similar activities and products.  By comparing the risk estimate of your products with those of other similar activities or products, you can begin to answer the questions of how safe your product is in the marketplace.  Product Liability Solutions, LLC can assist your company in making these assessments and comparisons.

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