A risk assessment is a systematic process that involves identifying, analyzing, and controlling hazards and risks present in a situation or a place . It is a decision-making tool that aims to determine which measures should be put in place to eliminate or control those risks, as well as specify which of them should be prioritized according to the level of likeliness and impact they have on the business .
The process of risk assessment involves five steps :
1. Identifying the hazard: This step involves identifying potential hazards that could cause harm to people, property, or the environment.
2. Assessing the risk: This step involves evaluating the likelihood and severity of harm that could result from each identified hazard.
3. Putting controls/safeguards in place: This step involves implementing measures to eliminate or reduce the risks associated with each identified hazard.
4. Re-assessing the risk with control in place: This step involves reviewing the effectiveness of the implemented controls/safeguards and re-evaluating the risks associated with each identified hazard.
5. Confirmation of reduced risk: This step involves confirming that the implemented controls/safeguards have reduced the risks associated with each identified hazard to an acceptable level.
Risk assessment is one of the major components of a risk analysis . Risk analysis is a process with multiple steps that intends to identify and analyze all of the potential risks and issues that are detrimental to the business or an enterprise . This is an ongoing process that gets updated when necessary . These concepts are interconnected and can be used individually .