Main Phases Involved in Risk Analysis and Assessment

Subject: Risk Management
Pages: 2
Words: 312
Reading time:
< 1 min

Risk is a hazard, danger, or exposure to mischance that can bring about the loss of property or life. There is, therefore, a need to manage the various risks that individuals more often than not find themselves exposed to. There are three main phases involved in risk analysis and assessment.

Risk assessment

In risk assessment, one needs to establish the risk context, which includes the scope and the boundaries of the risk analysis. Scientific evidence is mostly used in the estimation of risks. This assesses both the chances and consequences of potential harm. Hazard identification should be the first to tackle when solving the risk statements. This procedure identifies sources of probable injury and the underlying course through which the injury may occur. Another issue to consider is the probability of the injury or harm occurring. The hazard identification, consequence, and likelihood evaluation will lead to an appraisal of the possibility of the hazard developing into a risk. The risk should also be measured qualitatively to ensure enough preparation to prevent it without recurrence.

Communication of Risk

This involves dialogue between the risk assessors, risk managers, and stakeholders. On many occasions, differing perceptions of risk can influence stakeholders’ approach to a particular risky event. Therefore, communicating effectively provides an open, transparent, and interactive dialogue, which enables everyone to own the risk.

Risk Management

For a risk to be effectively managed, there is a need to have priorities right. Although risk assessment is most simply presented as a linear process, it is recurring or iterative in reality. Communication of risks results in active information on the other elements. Hence, it is useful to use terms that plainly distinguish between the likelihood assessment, consequence assessment, and the risk estimate.