What is Risk Assessment | Risk Assessment

                                    What is Risk Assessment | Risk Assessment

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What is Risk Assessment?

Risk assessment is the process of identifying and evaluating potential risks that could adversely affect an organization, project, or activity. The goal is to determine the likelihood and potential impact of those risks in order to develop strategies for avoiding or mitigating them.

The typical steps involved in a risk assessment are as follows:

1. Identify the potential risks: This involves reviewing the scope of the project, activity or operation and identifying all potential risks that could arise.

2. Assess the likelihood of each risk: Evaluate the probability that each risk will occur based on historical data, expert opinion, or other relevant information.

3. Assess the potential impact of each risk: Determine the potential consequences of each risk on the project, activity or operation. This includes both quantitative and qualitative analysis.

4. Prioritize the risks: Rank the identified risks by their potential impact and likelihood of occurring.

5. Develop risk response strategies: Determine how each risk is to be addressed, taking into account the severity and probability of the risk. Strategies may include risk avoidance, risk transfer, risk reduction or risk acceptance.

6. Monitor and review: Establish a system to monitor risks and assess the effectiveness of the risk response strategies over time. This involves continuous monitoring to ensure that risks are identified and managed in a timely manner.