<P> A high reliability organisation (HRO) is an organisation that has succeeded in avoiding catastrophes in an environment where normal accidents can be expected due to risk factors and complexity . Most studies of HROs involve areas such as nuclear aircraft carriers, air traffic control, aerospace and nuclear power stations . Organizations such as these share in common the ability to consistently operate safely in complex, interconnected environments where a single failure in one component could lead to catastrophe . Essentially, they are organisations which appear to operate' in spite' of an enormous range of risks . </P> <P> Some of these industries manage risk in a highly quantified and enumerated way . These include the nuclear power and aircraft industries, where the possible failure of a complex series of engineered systems could result in highly undesirable outcomes . The usual measure of risk for a class of events is then: R = probability of the event × the severity of the consequence . </P> <P> The total risk is then the sum of the individual class - risks; see below . </P> <P> In the nuclear industry, consequence is often measured in terms of off - site radiological release, and this is often banded into five or six - decade - wide bands . </P>

Total farm risk is equal to the business risk plus financial risk