number used to quantify risk Risk Priority Number: a measure used in Failure Mode and Effects Analysis to quantify risk. It is a product of the severity, probability of occurrence, and ability to detect failure.
high severity score. Step 4. For each potential risk, calculate the risk priority number (RPN) as RPN = opportunity × probability × severity. Step 5. Use Pareto analysis to analyze risks by RPN. Pareto analysis is a formal technique used where many possible courses of action are competing
By Vinod Lall
Definitions of ’RPN’ and meaning of ’RPN’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’RPN’ and other financial terms with our online QFINANCE Financial Dictionary.