Bayesian Risk Assessment

Bayesian Risk Assessment is a method used to evaluate potential risks by combining prior knowledge with new evidence. It begins with an initial estimate of risk based on previous data or expert opinion (the "prior"). As new information becomes available, this prior is updated to form a more accurate assessment (the "posterior"). This approach helps decision-makers understand uncertainties and make informed choices by considering both existing information and new findings, resulting in a more dynamic and evidence-based view of risk. It is widely used in fields like finance, healthcare, and environmental science.