Risk assessment involves identifying and analyzing potential threats that could undermine an organization’s objectives.
Key Features:
- Hazard identification using methods like questionnaires, work observations and document reviews
- Assessing likelihood and impact of each risk materializing through scoring
- Development and implementation of mitigation controls
- Regular reassessment accounting for changes
Example:
An IT firm conducted a risk assessment prioritizing cybersecurity vulnerabilities like phishing scams or server room access.
Takeaways:
Comprehensive risk assessments are crucial for strategic planning and regulatory compliance. Regular updates ensure dynamic risks are addressed. While qualitative, scoring risks facilitates comparison and resource prioritization. Assessments require cross-department cooperation.