Another approach is to provide a probability distribution for the number of occurrences in the time period. For example, the number of accidents at a particular intersection in a year may be from 0 to 15. Provide a probability for each number that sum to 1.0. The probability may be determined from theoretical considerations or historical evidence may be used. For most business risk analysis, the historical experience must be used.
Interventions are the key to risk management.
Select them carefully, assessment them thoroughly, and manage them rigorously. This risk would be assessed corporately to determine if it is acceptable. It is perfectly acceptable to accept this level of risk. If it is unacceptable, an intervention on your part is required. An organization may increase its marketing staff to provide more direct customer contact to reduce the possibility of customers switching to the competition.