In any organization, there should be no room for mistakes. Everything should be well planned, even the possibilities of risk. That is where risk management comes onto the scene. This process involves evaluation of the possible hazards in order for the organization to have a good plan to remedy or resolve these possibilities. However, this process will never be complete without undergoing a very crucial step--risk assessment.
As its name says, risk assessment is evaluating the various identified risks, the potential losses that could stem from them, and their probability. Unlike other business methods that use assumptions, risk assessment is a mathematical process. It may seem, difficult but risk assessment actually involves only the following steps:
- Considering the organization in need of risk assessment. The specific needed methodology and tools for risk assessment depend on the organization. Various industries have different environments, and each of these environments requires a special risk assessment system. Specific issues like construction safety, data security, occupational health, safety in the workplace, and safety training can be addressed with risk assessment. After that, seek some methodology guidelines on how to address risk assessment for your industry.
- Calling the representatives of every department or sector in your organization. Risk assessment does not only involve a single project but always involves the whole organization. By having a meeting with all of the departments' representatives, you are given the chance to uncover the different issues and risks that each department is facing.
- Assessing risks should be a regular activity for strategic planning. Risk assessment deserves to be a part of your strategic planning, because it will be a big help for the latter.
- Scheduling the regular risk assessment session and allotting enough time for it. Risk assessment is a very crucial risk management procedure. Therefore, it needs careful planning and documenting for the proper execution of plans. But how can your team do that in a rushed environment? That is why you should learn how to give enough time for the risk assessment session. How much time you need to devote to risk assessment will still depend on the size of your organization and the different matters that you put into consideration.
- Hazards definition. A risk can be measured by the potential loss if the risk were to happen and the possibility of its happening. Identifying the potential loss will give you an idea on what risk s you should most focus on. However, not all risks with large potential losses should be prioritized. There are risks with large potential losses but very low probability of occurrence.
- Record everything that the group has discussed on a worksheet. Create a comprehensive worksheet about the findings and possible solutions for the identified risks.
- Expand your knowledge of successful risk assessment planning. As said, this process is difficult, so expect that you might come across various errors before getting the most accurate answer. This problem can also be reduced by being specific in identifying the risks and probabilities.
Safety training, data security, safety in the workplace, occupational health, and construction safety are just a few of the many issues that can be resolves with risk assessment.