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Risk Assessment

Risk assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat, also called hazard.

Risk assessment will help you define the bottlenecks and risks (leading to production halt, loss of clients…) that may prevent the organization to achieve its activities. The occurrence of a risk assessment project will help you understand and focus on the risks that really matter.

Risk assessment comprehends the determination of the hazards, but also their likelihood and impact. A hazard is anything that may cause harm, such as chemicals, electricity, working from ladders, an open drawer, etc. A risk is the likelihood, high or low, that somebody could be harmed by these and other hazards, together with an indication of how serious the impact could be.

Once the risks are determined and their likelihoods and impacts are assessed, you will be able to prioritize them in the order of magnitude of a combination of their likelihood and impact – a multiplication of the likelihood and the impact can be used for example.

For each risk, you will also define a risk management approach and warning signs to better handle the risks. See the canvas below: