What is Risk Assessment?

What is a risk assessment?

Risk assessment is the process of identifying hazards that could negatively affect an organization’s ability to conduct business. These assessments help identify inherent business risks and prompt measures, processes and controls to reduce the impact of these risks on business operations.

Risk assessments help ensure the health and safety of employees and customers by identifying potential hazards. The goal of this process is to determine what measures should be implemented to mitigate those risks. For example, certain hazards or risks might determine the type of protective gear and equipment a worker needs.

Different industries present different types of hazards, and as such, risk assessments vary from industry to industry.

As a risk assessment is conducted, vulnerabilities and weaknesses that could make a business more hazardous are analyzed. Potential vulnerabilities could include construction deficiencies, security issues and process system errors. Companies can use a risk assessment framework (RAF) to prioritize and share the details of the assessment, including any risks to their IT infrastructure. The RAF helps an organization identify hazards and any business assets put at risk by these hazards, as well as potential fallout if these risks come to fruition. If a hazard has a large enough impact, then a mitigation strategy can be constructed.

In large enterprises, the chief risk officer or a chief risk manager usually conducts the risk assessment process.

Risk assessments are also a major component of a risk analysis — a similar process of identifying and analyzing potential issues that could negatively affect key business initiatives or projects.

How to Perform Risk Assessment in 5 Steps?

Below are the 5 steps on how to efficiently perform risk assessments:

1. Identify hazards

Survey the workplace and look at what could reasonably be expected to cause harm. Identify common workplace hazards. Check the manufacturer’s or suppliers’ instructions or data sheets for any obvious hazards. Review previous accident and near-miss reports.

2. Evaluate the risks

To evaluate a hazard’s risk, you have to consider how, where, how much, and how long individuals are typically exposed to a potential hazard. Assign a risk rating to your hazards with the help of a risk matrix. Using a risk matrix can help measure the level of risk per hazard by considering factors such as the likelihood of occurrence, and severity of potential injuries.

3. Decide on control measures to implement

After assigning a risk rating to an identified hazard, it’s time to come up with effective controls to protect workers, properties, civilians, and/or the environment. Follow the hierarchy of controls in prioritizing implementation of controls.

4. Document your findings

It is important to keep a formal record of risk assessments. Documentation may include a detailed description of the process in assessing the risk, an outline of evaluations, and detailed explanations on how conclusions were made.

5. Review your assessment and update if necessary

Follow up with your assessments and see if your recommended controls have been put in place. If the conditions in which your risk assessment was based change significantly, use your best judgment to determine if a new risk assessment is necessary.

Why are risk assessments important?

A risk assessment is a vital element for health and safety management and its main objective is to determine the measures required to comply with statutory duty under the Health and Safety at Work Act 1974 and associated regulations by reducing the level of incidents/accidents. It looks at what might cause harm and what is needed to avoid it, and assesses the effectiveness of any control measures in place. Extra control measures can then be used on the basis that they are “reasonably practicable”.

When should risk assessments be done?

You are probably already taking steps to protect your employees, but your risk assessment will help you decide whether you have covered all you need to. Start by using the five steps below, review any risk assessments you already have on an ongoing basis and always assess risks if new machines, substances or procedures are brought in.

Ready to take control of your risks? Reach out to us today to schedule a consultation. Let’s explore how our risk assessment services can propel your organization to new heights. Your success story starts here.

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