Sep 23 The Risk Assessment Process – What to Expect
Risk assessment is an attempt to detect potential risks and hazards that could cast a negative impact on the way an organization carries activities and conducts business. The assessment helps identify inherent risks and proposes preventive measures and solutions to curb or reduce the impact of risks on business affairs and operations. In simpler terms, a risk assessment process tells about potential mishaps and associated consequences. The results can be expressed both quantitatively and qualitatively.
A risk assessment framework or RAF can be used as a standard operating procedure to share the details collected after carrying out the assessment. This includes potential risks to information technology infrastructure. The RAF helps businesses or organizations identify hazards and any business assets vulnerable to those hazards. In addition to this, it also deduces expected fallout should any risks come to life.
Speaking of this, a Chief Risk Officer (CRO) or a Chief Risk Manager usually performs a risk basement process.
A risk assessment process can be very important as it can promise or, at least, make it possible to enjoy occupational health and safety. They generate awareness about hazards and prevent injuries, especially during the design stage.
What to expect?
Identification of the hazards
The first step in a risk assessment process involves running a check and identifying potentially lurking hazards.
The risk assessment process considers or identifies potential hazards like natural calamities, power outages, breach of privacy, and cyber-attacks, and system failures.
Determine the assets at risk
After identifying hazards, the next stage is where it determines what or who is open to harm. To be specific, it will clearly put out business assets that can suffer from a negative impact if and when the risk happens.
Speaking of this, the assets that are potentially at risk to the hazards include crucial infrastructure, IT systems, and critical business operations. Not only this, but even the reputation of the company as well as employee safety are at risk.
A detailed evaluation
Rest assured, because it will fully evaluate the risks and provide preventive measures accordingly. In other words, you will get to have a detailed risk critical analysis that will help identify the impacts potential hazards may cause on the business assets.
Speaking of this, potential hazards may include damage to property and interruption in the business, in addition to financial loss as well as legal penalties.
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