Occupational Health and Safety Blog

5 Steps Of Risk Assessment Process | Step By Step Guide 2024

What is risk assessment.

Risk assessment is the process by which potential hazards in a given environment are identified, and the level of risk associated with each hazard is evaluated. The primary aim is to determine the measures required to eliminate or control the hazard. The definition of risk assessment revolves around understanding risk and its potential impact on health and safety.

Risk assessment involves a systematic and detailed examination of any activity, process, or location to identify potential hazards and to quantify or evaluate the risk. It also includes identifying who might be at risk, determining the severity of the risk, evaluating risk management measures, and recording the findings.

The process of risk assessment may vary depending on the type of risk. For example, in a workplace setting, a risk assessment might involve identifying potential hazards such as harmful substances or dangerous machinery, assessing the chance of employees being harmed, and taking necessary action to control these risks.

By law, under the Occupational Safety and Health Act and other regulations, employers are obliged to conduct risk assessments to ensure the safety and health of their employees. The goal is to ensure that no one gets hurt or becomes ill due to the work environment or the nature of the job itself. 

Why is Understanding Risk Assessment Important?

Understanding risk assessment is pivotal for several reasons.

  • Firstly , it provides a clear view of risks and potential dangers in a particular setting. This understanding aids in the planning process, ensuring that appropriate risk control measures are put in place. Moreover, a good risk assessment identifies areas of high risk, enabling effective risk management strategies to be developed.
  • Secondly , risk assessments help organizations comply with legal and regulatory requirements. Many industries and workplaces are subject to specific safety regulations, and conducting risk assessments is a key component of fulfilling these obligations. By carefully assessing risks and implementing necessary control measures, organizations can demonstrate their commitment to maintaining a safe and compliant environment.
  • Thirdly , risk assessments contribute to the overall improvement of organizational processes and procedures. By identifying potential hazards and risks, organizations can implement measures to mitigate or eliminate these risks. This leads to enhanced productivity, reduced downtime, and improved efficiency. Risk assessments also promote a culture of safety within the organization, raising awareness among employees and encouraging proactive risk management practices.
  • Lastly , risk assessments play a crucial role in protecting individuals and assets. By identifying risks and implementing measures to control them, organizations can prevent accidents, injuries, and damages. This not only ensures the well-being of employees and stakeholders but also safeguards the organization’s reputation and financial stability.

In summary, understanding risk assessment is pivotal as it helps organizations identify and manage risks effectively, comply with legal and regulatory requirements, improve processes, and protect individuals and assets. By conducting regular risk assessments, organizations can proactively address potential risks and create a safer and more secure environment for all. 

The 5 Steps to Conducting a Risk Assessment

The risk assessment process can be broken down into five essential steps:

  • Hazard Identification: Identify potential hazards present in the environment.
  • Determine the Risk: Using qualitative and quantitative analysis, assess risks associated with each identified hazard.
  • Evaluate the Risk: Weigh up whether you’ve taken enough precautions or if more should be done to prevent harm.
  • Record Findings: Document the hazards, associated risks, and measures taken to control them.
  • Review and Update: Regularly review the risk assessment to ensure it remains relevant and effective.

Risk Assessment Infographic

Step 1: Hazard Identification

Hazard identification is the foundational step in the risk assessment process. It involves recognizing and documenting potential sources of harm in a particular setting or environment. Without a clear understanding of the hazards present, it’s impossible to assess the risks associated with them or develop effective control measures.

Here’s a more detailed breakdown of this crucial step:

1. Definition of a Hazard

A hazard is any source of potential damage, harm, or adverse health effects on something or someone. Essentially, it’s anything that can cause harm. Hazards can be physical (e.g., machinery), chemical (e.g., toxic substances), biological (e.g., bacteria or viruses), ergonomic (e.g., poor posture), or even psychosocial (e.g., workplace stress).

2. Sources of Information for Hazard Identification

  • Workplace Inspections: Regular walkthroughs of the work environment can help spot potential hazards. This includes observing processes, reviewing equipment, and noting any irregularities.
  • Employee Feedback: Workers often have firsthand knowledge of the hazards in their jobs. Engaging them can provide valuable insights.
  • Incident and Accident Reports: Past incidents can offer clues about existing hazards. Reviewing these reports can help in identifying patterns or recurring issues.
  • Material Safety Data Sheets (MSDS): These provide information on chemical products, detailing their hazards, handling procedures, and safety precautions.

3. Categorizing Hazards

Once identified, hazards can be categorized based on their nature. For instance:

  • Physical Hazards: Include machinery, electrical equipment, or anything that can cause physical injury.
  • Chemical Hazards: Relate to substances that can cause harm when inhaled, ingested, or come into contact with the skin.
  • Biological Hazards: These include bacteria, viruses, and other microorganisms that can cause diseases.

4. Documenting the Hazards

It’s essential to maintain a record of all identified hazards. This documentation should include:

  • Description of the hazard.
  • Location of the hazard.
  • Potential outcomes if the hazard leads to an incident.
  • Any existing control measures.

5. Prioritizing Hazards

Not all hazards pose the same level of threat. Some might have the potential to cause severe harm but have a low likelihood of occurring, while others might be more probable but less harmful. Prioritizing helps in determining which hazards need immediate attention.

6. Continuous Monitoring

Hazard identification isn’t a one-time activity. As work environments change, new hazards may emerge. Continuous monitoring ensures that new or evolving hazards are promptly identified and addressed.

In conclusion, hazard identification is a proactive approach to safety. By identifying potential hazards early, organizations can take steps to protect their employees and reduce the likelihood of adverse events.

Step 2 - Determine The Risk - Risk Assessment Process

Step 2: Determine the Risk

Once hazards have been identified, the next step is to determine the risk associated with each hazard. Risk determination involves evaluating the likelihood of the hazard causing harm and the severity of that harm.

This step is crucial as it helps prioritize which hazards need immediate attention and which control measures to implement. Here’s a detailed breakdown of this step:

1. Definition of Risk

Risk is defined as the combination of the likelihood of an occurrence of a hazardous event and the severity of injury or damage caused by this event. In simpler terms, it’s the potential consequence of a hazard combined with how likely it is to occur.

2. Qualitative Analysis

Qualitative risk analysis involves assessing risk based on non-numeric categories or levels. It’s more subjective and often uses terms such as “low,” “medium,” or “high” to describe the level of risk. The process might involve:

  • Expert Judgement: Relying on the experience and knowledge of experts to assess risk.
  • Checklists: Using predefined lists to ensure all potential risks are considered.
  • Brainstorming: Engaging a team to discuss and identify potential risks.

3. Quantitative Analysis

Quantitative risk analysis, on the other hand, involves numerical values. It provides a more objective and precise evaluation of risk. Methods might include:

  • Probability Analysis: Determining the likelihood of a particular event occurring.
  • Loss Estimation: Estimating the potential consequences or impact of an event.
  • Statistical Analysis: Using historical data to predict future risks.

4. Risk Matrix

A common tool used in risk determination is the risk matrix. It’s a grid that plots the likelihood of an event occurring against its potential severity. Each intersection on the matrix represents a risk level, helping organizations prioritize their response.

5. Factors to Consider

When determining risk, several factors should be considered:

  • Frequency of Exposure: How often are workers exposed to the hazard?
  • Duration of Exposure: How long are workers exposed to the hazard?
  • Potential Severity: What’s the worst possible outcome if the hazard leads to an incident?
  • Existing Control Measures: Are there any measures already in place to mitigate the risk?

6. Documenting the Risk

Similar to hazard identification, it’s essential to document the determined risks. This documentation should include:

  • The identified hazard.
  • The likelihood of occurrence.
  • The potential severity.
  • The overall risk rating (e.g., low, medium, high).

7. Review and Update

As with hazard identification, risk determination is not static. As conditions change, previously assessed risks might increase or decrease. Regular reviews ensure that risk assessments remain accurate and relevant.

In conclusion, determining the risk is a systematic approach to understanding the potential impact of identified hazards. By assessing risks qualitatively and quantitatively, organizations can make informed decisions about where to focus their risk management efforts.

Step 3 - Evaluate The Risk - Risk Assessment Process

Step 3: Evaluate the Risk

Risk evaluation is the process of comparing the determined risk against predetermined standards or risk criteria to decide whether the risk is acceptable or if further control measures are required.

This step is pivotal as it helps organizations prioritize their resources and efforts in managing risks. Here’s a detailed exploration of this step:

1. Definition of Risk Evaluation

Risk evaluation involves making decisions about the significance of the identified and assessed risks. It’s about deciding which risks are significant and must be managed immediately and which ones can be accepted or deferred for treatment at a later time.

2. Establishing Risk Criteria

Before evaluating risks, organizations need to establish risk criteria. These criteria define what is considered an acceptable or tolerable level of risk. Factors to consider might include:

  • Legal and regulatory requirements.
  • Organizational objectives and policies.
  • Stakeholder concerns and expectations.
  • Industry best practices.

3. Comparing Assessed Risk to Criteria

Once the risk criteria are set, the next step is to compare the determined risks (from Step 2) against these criteria. This comparison will help in deciding the following:

  • Which risks are acceptable and don’t need further action?
  • Which risks exceed the acceptable level and need further control measures.

4. Prioritizing Risks for Treatment

Not all risks that exceed the acceptable level will be treated immediately. Some might be more critical than others. During risk evaluation, risks are often prioritized based on factors like:

  • Severity of potential consequences.
  • Likelihood of occurrence.
  • Public perception and stakeholder concerns.
  • Cost and feasibility of implementing controls.

5. Documenting the Evaluation

It’s crucial to maintain a record of the risk evaluation process. This documentation should include:

  • The assessed risk level.
  • The predetermined risk criteria.
  • Decisions are made about the acceptability of the risk.
  • Any prioritization of risks for treatment.

6. Engaging Stakeholders

Risk evaluation often involves engaging various stakeholders, including employees, management, regulatory bodies, and even the public in some cases. Their input can provide different perspectives and insights, ensuring a comprehensive evaluation.

7. Continuous Review

Similar to the previous steps, risk evaluation is not a one-time activity. As the environment changes, previously evaluated risks might need re-evaluation. Regular reviews ensure that the organization’s approach to risk remains relevant and effective.

In conclusion, risk evaluation is about making informed decisions on which risks to address and in what order. By weighing up the potential harm against the precautions already in place, organizations can ensure that they are doing enough to protect their employees, stakeholders, and assets.

Step 4 - Record Findings - Risk Assessment Process

Step 4: Record Findings

Recording findings is a vital step in the risk assessment process. Proper documentation ensures transparency and accountability and provides a basis for future reviews and audits.

It also serves as evidence that the organization has taken systematic steps to identify, assess, and manage risks. Here’s a detailed look at this step:

1. Purpose of Recording Findings

  • Legal and Regulatory Compliance: Many industries and jurisdictions have regulations that mandate risk assessments and require documentation as proof of compliance.
  • Communication: Documented findings can be shared with stakeholders, including employees, to inform them about existing risks and the measures in place.
  • Basis for Future Action: Proper records provide a foundation for future risk management activities, including reviews and updates.

2. What to Include in the Documentation

  • Hazard Details: A clear description of each identified hazard, its location, and potential sources.
  • Risk Level: The determined level of risk (e.g., low, medium, high) based on the likelihood and potential severity of harm.
  • Control Measures: Existing measures in place to mitigate the risk and any additional measures recommended.
  • Persons at Risk: Identification of individuals or groups particularly at risk from the identified hazards.
  • Responsibilities: Details of who is responsible for implementing and monitoring control measures.
  • Dates: When the risk assessment was conducted and review dates.

3. Formats for Recording Findings

  • Risk Register: A centralized document or database where all risks are recorded. It typically includes risk descriptions, levels, controls, and responsibilities.
  • Risk Assessment Report: A detailed report that provides an in-depth analysis of the risk assessment process, findings, and recommendations.
  • Checklists and Templates: Standardized forms that ensure consistency in how risks are identified, assessed, and documented.

4. Review and Update Records

It’s essential to keep risk assessment records up-to-date. This involves:

  • Regularly reviewing and updating the records to reflect any changes in the work environment or processes.
  • Documenting any new hazards identified and the associated risks.
  • Recording any changes to control measures or risk levels.

5. Storage and Accessibility

  • Safe Storage: Ensure that risk assessment records are stored securely to protect sensitive information. This could be in secure digital databases or locked filing cabinets.
  • Accessibility: While records should be secure, they should also be easily accessible to those who need them, such as safety officers , management, or regulatory inspectors.

When recording findings, it’s beneficial to engage relevant stakeholders. This can include:

  • Sharing findings with employees to keep them informed.
  • Engaging with health and safety committees or representatives to gather feedback on the findings.

In conclusion, recording findings is not just a bureaucratic step but a crucial part of the risk assessment process. Proper documentation ensures that risks are managed systematically and provides a clear record of the organization’s commitment to safety.

Step 5 - Review And Update - Risk Assessment Process

Step 5: Review and Update

Risk environments are dynamic, with potential hazards and their associated risks evolving over time. As such, risk assessments cannot be static documents; they must be living entities that are regularly reviewed and updated to reflect current conditions.

This final step ensures that the risk assessment remains an effective tool in safeguarding the well-being of all stakeholders. Here’s a comprehensive breakdown of this step:

1. Why Regular Reviews are Essential

  • Changing Work Environments: As organizations grow, adapt, and change, new equipment might be introduced, processes might be altered, or new substances might be used, all of which can introduce new hazards.
  • Incident Feedback: If an incident occurs, it’s crucial to review the risk assessment to understand if the event was anticipated and if the controls were adequate.
  • Legislative and Regulatory Changes: Laws and regulations related to health and safety can change, necessitating updates to risk assessments to ensure compliance.

2. Triggers for Review

While regular reviews are essential, certain triggers might necessitate an immediate review:

  • After a near-miss or actual incident.
  • When significant changes are made to processes, tasks, or equipment.
  • If feedback from employees suggests that the current assessment is no longer valid.
  • When new hazards are identified.
  • If there are changes in legislation that impact the assessment.

3. Updating the Risk Assessment

During the review, if discrepancies or outdated information are found, the risk assessment must be updated. This could involve:

  • Adding new hazards and associated risks.
  • Adjusting the risk levels of previously identified hazards.
  • Modifying or introducing new control measures.
  • Removing hazards that no longer exist.

4. Engaging Stakeholders in the Review Process

The review process should be collaborative. Engaging employees, health and safety representatives, and other stakeholders can provide valuable insights. They can offer feedback on the effectiveness of current control measures and share observations that might not be immediately apparent to safety officers or management.

5. Documenting Changes

Every review and subsequent update should be documented. This includes:

  • The date of the review.
  • Who conducted the review?
  • Any changes made to the risk assessment.
  • Reasons for the changes.

6. Setting a Review Schedule

While ad-hoc reviews will occur due to specific triggers, it’s also beneficial to set a regular review schedule. This could be annually, bi-annually, or at another suitable frequency based on the organization’s operations and risk profile.

7. Continuous Monitoring

In addition to scheduled reviews, continuous monitoring of the workplace can help identify changes that might impact the risk assessment. This proactive approach ensures that potential issues are identified and addressed promptly.

In conclusion, the review and update step underscores the importance of adaptability in risk management. By ensuring that risk assessments are current and reflective of the actual conditions on the ground, organizations can maintain a robust and effective approach to health and safety.

Risk Assessment Process

Risk Analysis vs. Risk Evaluation: What’s the Difference?

Both risk analysis and risk evaluation are critical components of the risk assessment process, but they serve distinct purposes and involve different activities.

Let’s delve deeper into each to understand their nuances and how they fit into the broader risk management framework.

Risk Analysis

Risk analysis is the process of identifying and understanding uncertainties, their sources, potential impacts, and the likelihood of those impacts occurring. It provides a foundation for making informed decisions about risk management.

Components of Risk Analysis

  • Hazard Identification: This is the initial step where potential sources of harm are recognized.
  • Risk Estimation: Here, the likelihood of the hazard causing harm and the potential severity of that harm are determined. This can be done qualitatively (using descriptive terms like low, medium, and high) or quantitatively (using numerical values or statistical data).
  • Data Collection: Risk analysis often requires gathering data, which can be historical (from past incidents) or predictive (based on models or simulations).

Objectives of Risk Analysis:

  • Understanding Risk: To gain a comprehensive view of the potential threats and their implications.
  • Informing Decision-Makers: Providing essential data that can guide decisions about risk management strategies.
  • Prioritizing Risks: By understanding the potential impacts and their likelihood, organizations can prioritize which risks need immediate attention.

Risk Evaluation

Risk evaluation is the process of comparing the results of the risk analysis against predefined risk criteria to determine the acceptability of the risk. It’s about deciding which risks can be accepted and which need further intervention.

Components of Risk Evaluation:

  • Establishing Risk Criteria: Before evaluating risks, organizations need to define what is considered an acceptable level of risk. This can be based on legal requirements, industry standards, or organizational objectives.
  • Comparing Risks to Criteria: The risks identified and analyzed are then compared against the established criteria. This helps in determining if the risk is within acceptable limits or if it exceeds them.
  • Decision Making: Based on the comparison, decisions are made about the need for further risk treatment. If a risk exceeds the acceptable criteria, it may require mitigation, transfer, or avoidance strategies.

Objectives of Risk Evaluation:

  • Guiding Risk Management: By understanding which risks exceed acceptable levels, organizations can decide where to focus their risk management resources.
  • Ensuring Compliance: Many industries have regulations that dictate acceptable risk levels. Risk evaluation ensures that organizations remain compliant.
  • Stakeholder Communication: Risk evaluation results can be communicated to stakeholders, ensuring transparency and building trust.

In Summary:

While both risk analysis and risk evaluation are interconnected stages in the risk assessment process, they serve different purposes:

  • Risk Analysis is about understanding the nature, sources, likelihood, and potential impacts of risks. It’s the process of breaking down and examining the components of risk.
  • Risk Evaluation takes the findings from the risk analysis and weighs them against established criteria to decide on the acceptability of the risk and the need for further action.

Together, these processes ensure that organizations have a comprehensive understanding of their risk environment and can make informed decisions to protect their assets, reputation, and stakeholders.

5 Steps Of Risk Assessment

Hazards and Risks: Are They the Same?

Hazards and risks are related concepts but are not the same thing. They are often used in the fields of safety, health, and risk management to assess and mitigate potential dangers, but they refer to different aspects of a situation. Here’s a breakdown of the differences between hazards and risks:

In essence, while hazards and risks are closely related concepts in safety management, they serve different purposes. A hazard exists inherently, while risk is a measure of the potential impact of that hazard in specific circumstances. Proper safety management involves identifying hazards and then assessing and managing the associated risks.

How to Use Risk Assessment in Risk Management?

Risk assessment and risk management are interconnected components of a comprehensive approach to safety and security in various settings. While risk assessment focuses on identifying and evaluating potential threats, risk management is about implementing strategies to address those threats.

Here’s a detailed breakdown of how risk assessment fits into the broader risk management process:

1. Risk Identification (Part of Risk Assessment)

To recognize potential sources of harm or adverse effects in a specific setting.

Activities:

  • Conducting workplace inspections.
  • Reviewing historical data and incident reports.
  • Engaging with employees and stakeholders for feedback.
  • Analyzing processes, equipment, and materials used.

2. Risk Analysis (Part of Risk Assessment)

To understand the nature, sources, likelihood, and potential impacts of identified risks.

  • Estimating the likelihood of each hazard causing harm.
  • Determining the potential severity of that harm.
  • Gathering data, either historical or predictive, to support the analysis.

3. Risk Evaluation (Part of Risk Assessment)

To compare the analyzed risks against predefined criteria to determine their acceptability.

  • Establishing risk criteria based on legal, industry, or organizational standards.
  • Comparing identified risks against these criteria.
  • Prioritizing risks based on their potential impact and likelihood.

4. Risk Treatment (Part of Risk Management)

To address the identified and evaluated risks, ensuring they are either eliminated or reduced to an acceptable level.

  • Deciding on appropriate control measures for each risk. This could involve eliminating the hazard, implementing safety procedures, or using protective equipment.
  • Allocating resources and responsibilities for implementing these controls.
  • Developing a risk management plan that outlines the chosen strategies and their implementation.

5. Monitoring and Review (Part of Risk Management)

To ensure that the risk management strategies are effective and to identify any changes in the risk environment.

  • Regularly reviewing and updating the risk assessment.
  • Monitoring the effectiveness of control measures.
  • Adjusting strategies as necessary based on feedback and monitoring results.
  • Engaging with stakeholders for continuous feedback.

6. Communication and Consultation (Integral to Both Risk Assessment and Management)

To ensure transparency, build trust, and gather diverse insights.

  • Sharing risk assessment findings and management plans with relevant stakeholders.
  • Engaging employees in the risk assessment and management processes.
  • Consulting with external experts or regulatory bodies as needed.

In conclusion, risk assessment is a foundational step in the risk management process. It provides the necessary insights and data to inform risk management decisions. By integrating risk assessment into risk management, organizations can ensure a proactive, systematic, and comprehensive approach to safety and security.

Risk Assessment Definition

Ecological Risk vs. Human Health Risk: A Comparison

Ecological risk pertains to the potential harm to the environment, while human health risk relates to potential harm to individuals. Both types of risk assessments are crucial, with the former focusing on protecting ecosystems and the latter on safeguarding human health.

Dynamic Risk: What Does It Mean?

Dynamic risk pertains to uncertainties or threats that are not static but evolve or change based on various factors. These risks can arise suddenly and might not have been previously identified or considered in standard risk assessments.

Characteristics of Dynamic Risks:

  • Temporal Nature: Unlike static risks, which remain relatively constant, dynamic risks can change from moment to moment or day to day.
  • Dependent on External Factors: These risks often depend on external variables, such as environmental conditions, technological changes, or shifts in market demand.
  • Vary Across Industries: What’s considered a dynamic risk in one industry might be static in another. For example, in the tech industry, a dynamic risk might be rapid technological obsolescence, while in agriculture, it might be sudden weather changes.

Examples of Dynamic Risks:

  • Construction: As mentioned, a construction site’s risks can change daily. One day, there might be risks associated with heavy machinery operation, and the next, the risks might revolve around electrical installations.
  • Finance: In the stock market, dynamic risks involve fluctuating stock prices, sudden economic policy changes, or unexpected geopolitical events.
  • Healthcare: The emergence of a new strain of a virus can be a dynamic risk that requires immediate response and changes in treatment protocols.
  • Cybersecurity: The digital landscape is continually evolving, leading to new vulnerabilities and threats. Today’s secure system might be tomorrow’s risk due to new hacking techniques or software vulnerabilities.

Importance of Understanding Dynamic Risks:

  • Proactive Response: Recognizing that risks can change allows organizations to be more agile and responsive, adapting their strategies as risks evolve.
  • Enhanced Safety: Especially in industries like construction or manufacturing, understanding dynamic risks ensures that safety measures are relevant to the current situation, reducing the likelihood of accidents.
  • Strategic Decision-Making: For businesses, grasping dynamic risks can lead to better-informed decisions, ensuring that they remain competitive and resilient in the face of changing market dynamics.
  • Continuous Monitoring: Recognizing the dynamic nature of certain risks underscores the importance of continuous monitoring and regular risk assessments.

In conclusion, dynamic risk emphasizes the ever-changing nature of certain threats or uncertainties. By understanding and preparing for these risks, organizations can ensure that they remain adaptive, resilient, and ahead of potential challenges.

Risk Assessment

The Role of Health Risk Assessments in HSE

Health, Safety, and Environment (HSE) is a comprehensive approach that organizations adopt to ensure the well-being of their employees and the environment. Within this framework, health risk assessments are instrumental in identifying, evaluating, and managing potential health threats. Here’s a detailed look at their role:

1. Identification of Health Hazards

Health risk assessments begin by identifying potential health hazards in the workplace. This could range from exposure to harmful chemicals, ergonomic challenges, excessive noise levels, to biological agents. By pinpointing these hazards, organizations can take the first step in safeguarding their employees.

2. Evaluation of Exposure Levels

Once hazards are identified, the assessment evaluates the level and duration of employee exposure. This helps determine the severity of the risk. For instance, brief exposure to a chemical might not be harmful, but prolonged exposure could lead to chronic health issues.

3. Determination of Risk Levels

By combining the information on the hazard and exposure levels, the health risk assessment provides a clear picture of the potential health risks. This can be categorized as low, medium, or high, helping prioritize mitigation measures.

4. Implementation of Control Measures

Based on the findings of the health risk assessment, appropriate control measures are implemented. This could include personal protective equipment (PPE), improved ventilation systems, or changes in work processes to reduce exposure.

5. Monitoring and Review

Health risks are not static. As work processes change, new equipment is introduced, or new substances are used, health risks can evolve. Regular monitoring and review of health risk assessments ensure that they remain current and effective.

6. Compliance with Regulations

Many jurisdictions have regulations mandating health risk assessments to ensure occupational health and safety. Conducting these assessments helps organizations comply with these legal requirements, avoiding potential penalties.

7. Employee Training and Awareness

Health risk assessments often lead to training programs where employees are educated about potential health hazards, safe work practices, and the use of PPE. An informed workforce is better equipped to protect itself.

8. Stakeholder Communication

Sharing the findings of health risk assessments with stakeholders, including employees, unions, and regulatory bodies, fosters transparency and trust. It demonstrates the organization’s commitment to health and safety.

9. Prevention of Occupational Diseases

By identifying and mitigating health risks, these assessments play a crucial role in preventing occupational diseases, reducing absenteeism, and ensuring a healthier workforce.

10. Financial Savings

While there’s an upfront cost associated with conducting health risk assessments and implementing control measures, in the long run, they can lead to significant savings. This is achieved by reducing medical costs, avoiding potential legal liabilities, and enhancing employee productivity.

In conclusion, health risk assessments are a cornerstone of the HSE approach. They provide a systematic method to identify, evaluate, and manage health risks in the workplace, ensuring that organizations not only comply with regulations but also prioritize the well-being of their employees.

Risk Assessment Steps

Improving Safety: The Ultimate Goal of Risk Assessment

Risk assessment is not just a procedural requirement or a compliance activity; at its core, it’s about safeguarding people and assets. The process provides a structured way to understand potential threats and take proactive measures to mitigate them. Here’s how risk assessment plays a pivotal role in enhancing safety:

1. Proactive Approach to Safety:

Rather than reacting to incidents after they occur, risk assessment allows organizations to anticipate and prevent potential hazards. This proactive approach ensures that measures are in place to prevent accidents before they happen.

2. Comprehensive Understanding of Hazards:

Risk assessment involves a thorough examination of the workplace or environment. This detailed analysis ensures that even less obvious hazards are identified and addressed, leaving no stone unturned in the pursuit of safety.

3. Prioritization of Risks:

Not all risks are equal. Some might have catastrophic consequences but are highly unlikely, while others might be minor but occur frequently. Risk assessment helps organizations prioritize which risks to address first, ensuring that resources are allocated effectively.

4. Informed Decision Making:

With a clear understanding of potential risks, organizations can make informed decisions about where to invest in safety measures, ensuring that efforts are directed where they will have the most significant impact.

5. Employee Engagement and Training:

Risk assessments often involve engaging with employees, gathering their insights, and understanding their concerns. This collaborative approach not only results in a more comprehensive assessment but also fosters a safety culture where employees are actively involved. Furthermore, the findings from risk assessments can be used to develop targeted training programs, equipping employees with the knowledge and skills they need to work safely.

6. Continuous Improvement:

Risk assessment is not a one-time activity. Regular reviews and updates ensure that the assessment remains relevant, especially as conditions change, new equipment is introduced, or processes evolve. This commitment to continuous improvement ensures that safety measures are always up-to-date.

7. Stakeholder Confidence:

By conducting thorough risk assessments and acting on their findings, organizations can build confidence among stakeholders, including employees, customers, regulators, and the community. It demonstrates a genuine commitment to safety and well-being.

8. Financial and Operational Benefits:

Improving safety through risk assessment can lead to significant financial benefits. Fewer accidents mean reduced medical costs, less downtime, and decreased potential for legal liabilities. Moreover, a safe work environment can boost employee morale and productivity.

9. Compliance and Reputation:

Many industries have regulations and standards that mandate risk assessments. By conducting these assessments, organizations not only ensure compliance but also enhance their reputation as responsible entities that prioritize safety.

In conclusion, risk assessment is a powerful tool in the quest for improved safety. It provides a systematic, structured approach to identifying threats and taking action to mitigate them. The ultimate goal is clear: to create environments where employees and stakeholders can operate without fear of harm and where safety is a shared and prioritized value.

  • Risk assessment is a systematic process to identify and evaluate risks.
  • It involves five key steps, from hazard identification to regular reviews.
  • Understanding the difference between hazards and risks is crucial.
  • Risk assessment plays a pivotal role in effective risk management.
  • The ultimate goal is to enhance safety across industries.

What is risk assessment?

Risk assessment is the process of identifying, analyzing, and evaluating potential risks and hazards in order to determine the level of risk associated with a particular activity or situation.

Why is understanding risk important?

Understanding risk is important because it helps individuals and organizations make informed decisions, prioritize resources, and implement measures to reduce or mitigate potential risks.

How do you conduct a risk assessment?

The process of conducting a risk assessment involves several steps, including hazard identification, risk analysis, risk evaluation, risk treatment, and monitoring and review.

What is the risk assessment process?

The risk assessment process consists of five steps: identifying hazards, assessing the level of risk, evaluating the likelihood and consequences of the risk, implementing control measures, and monitoring and reviewing the effectiveness of the measures.

What is a risk assessment tool?

A risk assessment tool is a resource or software that helps individuals or organizations systematically assess and analyze risks in order to make informed decisions and develop risk management strategies.

What is hazard identification and risk assessment?

Hazard identification and risk assessment is the process of identifying potential hazards, assessing the associated risks, and implementing measures to control or mitigate those risks in order to ensure safety and minimize harm.

When is risk assessment used?

Risk assessment is used in various fields and industries, such as health and safety management , project management, financial planning, environmental management, and security planning.

What are the two types of risk?

The two types of risk are inherent risk and residual risk. Inherent risk refers to the level of risk before any control measures are implemented, while residual risk is the level of risk that remains after control measures are in place.

What is a formal risk assessment?

Formal risk assessment is a structured and systematic process that follows a predefined set of steps and guidelines to assess and evaluate risks in a consistent and reliable manner.

How can I perform a risk assessment?

To perform a risk assessment, you should follow a step-by-step process, gather relevant data, involve a competent assessment team, use appropriate risk assessment methodologies, analyze the data, and document the findings and actions taken.

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Malik Imran

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22nd February, 2024

The 5 Steps To Risk Assessment (And How To Complete Them)

In this blog post, we look at what the 5 steps to risk assessment are, why you need them, and how to complete them. From identifying hazards and risks in your workplace to deciding on precautions and recording your assessment.

The 5 Steps To Risk Assessment (And How To Complete Them) header image

Risk assessment is the process of identifying what could harm people in your business, and deciding what action is needed to reduce the risk.

At work, your risk assessment process can follow these 5 steps:

  • Identify hazards
  • Assess the risks
  • Control the risks
  • Record your findings
  • Review the controls

Carrying out a risk assessment might sound complicated, but you've been learning how to risk assess your whole life. And if you've made it this far, you're probably pretty good at it!

You might not realise it but you are risk assessing things all day. When we are driving, working, playing, and even just crossing the road. We ask ourselves, is this safe?

It's a skill we discover as children and develop through experience. We learn when things are hot, not to touch them again.

Yes, some people might be more accident-prone than others. But, no matter how clumsy you think you are, we all have the ability to assess risks. To look at a situation and determine if it is safe to continue.

Risk assessment at work might seem more formal. It's a legal requirement after all . But it serves the same purpose and asks the same question. Is this safe?

That's all a risk assessment is, at its core - an assessment of risk.

completing paperwork survey

But if we all know how to risk assess in everyday life, why do we need "5 steps" ? And why has it become a legal requirement?

At work, employers have legal health and safety responsibilities (and so do employees ). And you're not choosing do to these activities, you're being told to do them. So they need to be safe (it's the law!).

The hazards might be more complex, depending on the type of work you do. The risks might be more serious than touching something hot. But the overall aim is the same. We need to make sure the activity is safe, or it is made safe.

The 5 steps to risk assessment:

  • Identify the hazards
  • Decide who might be harmed and how
  • Evaluate the risks and decide on precautions
  • Record your significant findings
  • Review your assessment and update if necessary

These are the 5 steps you can work through when writing a risk assessment . Going through this step-by-step process will help you to make sure you have covered all the necessary bases. Ok, we now know the 5 steps, but how do we complete them?

Need to write a risk assessment? Use the free blank risk assessment template to follow along and create your own risk assessment.

1. Identify the hazards

The first step of risk assessment is to identify the hazards . A hazard is something with the potential to cause harm. For example, a substance could be a hazard, it might be toxic, you could spill it and create a slip hazard, or it could be flammable. Any of these things have the potential to cause harm.

A hazard is not a risk. Find out more in the difference between hazard and risk explained .

There may be one hazard or multiple hazards involved with a task or activity.

You don't have to identify every possible hazard, but you should aim to identify any significant hazards . These are things which could result in harm to people.

risk assessment hazard

Hazards can be identified by reviewing the activity, and the working environment.

  • Fire and Explosion
  • Radiation / Biological Hazards
  • Environment
  • Individuals

Need more examples? Here's 52 examples of workplace hazards .

2. Decide who might be harmed and how

Now it's time to assess the risks, by looking at who might be harmed by the hazards and how .

For each hazard, you need to be clear about who might be harmed. This might be workers carrying out the activity, visitors, or even members of the public if you are working on or adjacent to public areas.

Don't just think about those carrying out the task. Of course, they might be the most obvious people that could be harmed. But what about others?

chimney fumes

If the task creates dust or fumes, that could spread to other workers nearby. If you are working in public areas or occupied buildings, you need to think about people beyond your own team.

  • The worker or operators
  • Adjacent workers
  • Particular groups of workers
  • All workers
  • Other occupants
  • Members of the public

You might already be controlling some of the risks with your existing controls. For example, the activity might be noisy, but it will happen in a place that already requires ear protection.

This might reduce how someone could be harmed , but next, you'll decide if there's more you need to do to control the risks.

3. Evaluate the risks and decide on precautions

In step 3 of our risk assessment, we evaluate the risks and decide on precautions to control the risks.

We measure risk by likelihood and severity. This tells us if the risk is low or high. Likelihood is how likely harm could occur, for example, rare or certain. And severity is how serious that harm could be, for example, minor cuts or death.

You might choose to represent this risk level as Low, Medium, or High. Or use a 5x5 risk matrix , a 9x9 matrix or some other scale.

risk assessment high medium low risk levels

Use the free risk assessment calculator to help assess and prioritise your risk levels. We use a 9x9 calculation simplified into Low, Medium, and High results for your risk levels.

The higher the risk, the more of a priority controlling that risk should be.

Look at each hazard you identified (in Step 1) and the risks they create (in Step 2). How can you manage these risks responsibly?

The control measures you put in place should bring the risk down to an acceptable level before you start work. If the control measures are not in place that need to be, then work shouldn't start or continue until those risks have been controlled.

Risk doesn't have to be zero . There will often be some risk remaining ( residual risk ) - but it needs to be at an acceptable level. If the risk is still high, and someone could get seriously hurt, then it is unlikely you have done enough to control the risks.

Put in place actions and controls to reduce the risk as much as is reasonably practicable, to reduce the risk to an acceptable level.

Here are the 5 best risk assessment control measures with examples , to help you out with step 3.

4. Record your significant findings

Once you have completed the first 3 steps, it's time to record your significant findings. This is a legal requirement if you have 5 or more employees.

(6) Where the employer employs five or more employees, he shall record— the significant findings of the assessment; and any group of his employees identified by it as being especially at risk. The Management of Health and Safety at Work Regulations Risk Assessment

Although it's not a legal requirement to write your risk assessment down if you have less than 5 employees, it's useful to record your findings no matter what size of business you are.

Clients and others may ask to see it. Your team might need to see it. And businesses of all sizes are required to carry out risk assessments, so having it written down proves that you have done one and gives you a record.

A written risk assessment is a record of your findings and can be used to communicate the hazards and controls to your workforce, and as a record that the assessment has been carried out.

writing risk assessment checklist

5. Review your assessment and update if necessary

Finally, make sure you review your risk assessment and update if necessary.

Things can change over time, review and revision may be necessary when conditions change or based on feedback from the team completing the activity.

How often you need to review your risk assessment will depend on several factors:

  • If the way you work changes.
  • If you introduce new technology or equipment.
  • If health and safety regulations change.
  • If you identify problems.

Even if nothing changes, review your risk assessments periodically and make sure your risk assessment stays up to date.

Find out more in how often do you need to review a risk assessment?

Need help with your risk assessments? We have a large library of risk assessment templates that you can edit and use for your business activities.

This article was written by Emma at HASpod . Emma has over 10 years experience in health and safety and BSc (Hons) Construction Management. She is NEBOSH qualified and Tech IOSH.

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The 5 Steps to Risk Assessment Explained

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Health and safety risk assessments are critical to creating safe work environments for your employees. Risk assessments are a pillar of risk management and a key provision in the Management of Health and Safety at Work Regulations , allowing employers to identify hazards that could harm people within a workplace. More importantly, risk assessments enable organisations to conduct a practical review of the steps that prevent risks from hurting people and damaging property.

But the value of risk assessments goes beyond health and safety at work. A risk assessment also allows contractors and self-employed individuals (i.e., sole traders) to achieve health and safety accreditation through prequalification questionnaire (PPQ)systems like SSIP, PAS 91, and the Common Assessment Standard. This enables you to demonstrate your ability to manage health and safety risks — a requirement of many tenders and contracts.

What Is A Health And Safety Risk Assessment?

A health and safety risk assessment identifies hazards that currently exist or have the potential of appearing in the workplace. Although these risks focus on health and safety, they also encompass other areas such as quality management, environmental damage and asset damage — often, issues affecting one area impact the other. For example, faulty electrical equipment could cause fires that damage your property. Poor manual handling processes could injure workers and expose your organisation to legal action.

Related Reading: An Introduction to Risk Assessments

Risk assessments are a legal obligation and should form part of your duty of care to protect employees and the general public from harm. Under the Management of Health and Safety at Work Regulations, employers are legally required, at the minimum, to do the following:

  • Identify hazards that could cause injury or illness in your business
  • Determine the likelihood of common hazards harming someone and how seriously
  • Take action to eliminate or control the hazard.

Self-employed individuals whose work activities fall under “construction, agriculture, railways or work with gas, asbestos or genetically modified organisms” or pose a risk to the health and safety of others are also required by law to assess risks in their places of work.

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A quick and easy-to-use online tool to help you create professional-looking rams, three goals of conducting a health and safety risk assessment.

When thinking about the importance of health and safety risk assessments, it helps to think of their three primary goals:

  • A reliable health and safety risk assessment should identify health and safety hazards and put precautions in place to prevent accidents and work-related ill-health.
  • A risk assessment will enable your organisation to protect people, employees, contractors and subcontractors.
  • Risk assessments enable contractors to prequalify for tenders. They allow contractors to demonstrate their ability to manage and reduce health and safety risks.

Related Reading: Risk Assessment — Template and Guide

What are the 5 steps to risk assessment.

Although employers and self-employed individuals don’t have to use these precise terms, the law states that a risk assessment should demonstrate that:

  • Proper checks have been made
  • Parties and individuals that may be affected by hazards have been identified
  • You have addressed the obvious significant risks and accounted for the number of people who could be affected
  • You’ve taken reasonable steps to prevent harm, and the remaining risk is acceptable
  • Your workers (and contractors, if any) or their representatives have been involved in the risk assessment process.

The level of detail in your risk assessment should be proportionate to the significance of the risk and the nature of the work you’re doing. Generally speaking, small or insignificant risks or risks from routine activities associated with general life don’t have to be mentioned unless your work activities alter or compound their potential threat to your workplace. Similarly, you are not expected to anticipate unforeseeable or unprecedented risks. In other words, your risk assessments should only include risks you are reasonably expected to be aware of.

Although there is no one-size-fits-all approach to conducting risk assessments, the Health and Safety Executive (HSE) has outlined five steps contractors and organisations can follow to create safer working environments.

Risk Assessment Step #1: Identify Hazards In The Workplace

Identifying and locating potential hazards is the first step in a risk assessment. Several different types of hazards should be considered.

Physical risks include tripping or falling in the workplace, sustaining injuries when lifting heavy materials or working with dangerous machinery. Biological and chemical hazards should also be considered, such as asbestos, chemical cleaning products and infectious diseases. And risk assessments shouldn’t overlook psychosocial hazards that can affect the mental health and wellbeing of individuals, for example, stress, victimisation and excess workload. Every workplace is different, so the types of hazards you identify will depend on your industry and the specific site.

You may be able to spot some physical hazards by simply walking around the workplace and taking note of anything that could cause harm. But to identify the not-so-obvious risks, you could look back over your records of accidents and ill-health to see if there are any patterns. Or, look through instruction manuals from products and equipment used in the workplace — these can indicate any risks involved in working with these items.

Related Reading: Who Is Responsible For Workplace Health and Safety?

Risk assessment step #2: decide who might be harmed and how .

Once you’ve identified the hazards in your workplace, you should consider why they are harmful — what type of injuries or ill-health can they cause? Hazards may pose a single threat or be harmful in more than one way.

As well as detailing exactly how hazards can be harmful, risk assessments should identify who is at risk. This may be all those working on-site, particular groups of workers, visitors, or passers-by. Understanding who could be at risk will help individuals and organisations keep people safe.

Risk Assessment Step #3: Evaluate The Risks And Take Action To Prevent Them 

This stage is about taking action to create a safe work environment. Evaluate the likelihood and severity of risks and then put precautions and control measures in place.

While you’re not expected to eliminate risk, as often this isn’t possible, you should take action proportionate to the level of risk. This means risks that pose a bigger threat should receive more extensive control measures than low-risk hazards.

The actions taken during this stage could include trialling less risky equipment or products, restricting access to hazardous areas, offering effective health and safety training , and issuing protective equipment to employees and contractors.

Risk Assessment Step #4: Record Your Findings 

Recording the findings of your risk assessment means you can use and review the assessment in the future. For employers with five or more staff, it’s also a legal requirement to document the findings of risk assessments and the action taken to reduce the level of risk.

A written risk assessment provides proof that hazards were evaluated and appropriate action was taken to reduce risk. This proof can protect your business from legal liability and may be useful for raising awareness amongst contractors and employees about the potential risks of a worksite.

You can also follow through on the significant findings of your risk assessment by producing a method statement . This document details how, when, and why you should implement your risk management measures.

Related Reading: What Is A Method Statement?

Risk assessment step #5: review the risk assessment.

Work environments are constantly changing — new people come and go, equipment and products are swapped and trialled, and new materials are introduced. And the more a workplace changes, the less relevant the risk assessment becomes. So to make sure risk assessments are up to date and inclusive of all potential hazards, they need to be reviewed and potentially updated every time there are significant changes in the workplace.

Follow the CHAS blog to stay up to date on the latest guides and news on health and we safety standards in the construction industry. 

Let CHAS help your business comply with these regulations through a health and safety assessment . Sign up for CHAS Standard or use your existing SSIP accreditation to join our network of prequalified contractors in the UK. 

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risk assessment 5 step process

Whether you are looking to create a risk assessment for the first time, or just simply want to brush up on the steps involved, either way you're in the right place!

Our easy to follow guide will help you to understand what a risk assessment is and highlight the five steps that you should follow when creating one, as outlined by the HSE (Health and Safety Executive).

Before we dive in to the five steps, let's first briefly recap what a risk assessment is and its purpose.

What is a risk assessment?

In short, a risk assessment is an examination of a given task that you undertake at work, that could potentially cause harm to people.

The goal is to understand any potential hazards, before then outlining and undertaking reasonable steps to prevent harm. Therefore, a risk assessment can help you to understand and take precautions for such eventualities.

Finally, remember that some regulations will likely require certain control measures to be put in place, see step 3 for more information on this.

If you need help creating a risk assessment, then be sure to use our free risk assessment template online or download our free app to streamline the process, and undertake risk assessments wherever you may be

The five steps to risk assessment

Below are the five steps to risk assessment, as outlined by the HSE. These steps should be adhered to when creating a risk assessment.

Workplace hazards can come in many forms, such as physical, mental, chemical, and biological, to name just a few.

Hazards can be identified by using a number of techniques, although, one of the most common remains walking around the workplace to see first-hand any processes, activities, or substances that may injure or cause harm to employees.

Of course, if you work in the same environment every day, then you may miss some hazards, therefore, the HSE also recommend looking at and considering;

  • Your accident and ill-health records
  • Non-routine operations
  • Long-term hazards to health.

Identifying who may be at risk extends to full and part-time employees, contract staff, visitors, clients, and other members of the public at the workplace.

You should also consider people that may not be in the office all the time or at different times, such as employees working night shifts for example, and lone workers.

For each hazard you will need to understand who may be harmed, this of course, will help you to identify preventive measures for controlling a given risk.

Once you've identified hazards, the next logical step it to completely remove the associated risks, however, where this is not possible, then certain control measures should be put in place.

For example, if an employee is a cleaner, then they'll inevitably come into contact with chemicals. The likelihood is that such a hazard can not be removed, however, certain control measures, such as providing protective gloves, mops, and even training for safely storing and handling cleaning chemicals can and should be in place.

Below is an example of just some hazards, which can easily be applied to risk assessments using our risk assessment template and award winning safety app.

  • Contact with Cleaning Chemicals eg Bleach with risk of skin irritation or eye damage from direct contact with Cleaning chemicals Vapour from Cleaning Chemicals can cause breathing problems
  • Dust and off-cuts will be produced with possible slip / spillage
  • Electrical Tools Required to Carry out work with risk of potentially Fatal Shocks or Burns
  • Falling objects from work area above which could be Fatal
  • Lone Working with risk of injury or ill health while working alone
  • Manual Handling - Materials will need to be carried to Work Area which if not done correctly can cause immediate or longer term injury
  • Noise from nearby equipment or other Tradesmen which can cause discomfort and potential damage
  • Possible Asbestos on site with risk of fibres in air inhaled when disturbed
  • Possible disturbance of Water / Gas or Electrical Works
  • Slips, Trips and Falls which can cause sprains, fractures etc if people fall over debris / offcuts / tools or slip on spillages
  • Working at Height - with risk of potentially Fatal falls, or bruising / fractures

The HSE recommend that you should record your significant findings. Such findings will include, the hazards, how people may be harmed by them, and essentially the control measures that you have implemented.

It's worth highlighting that currently only organisations with five or more staff are required to record in writing the findings of a given risk assessment, regardless, it's still good practice to have a reference.

Recording your findings does not need to be a lengthy exercise, in fact, the HSE currently states " For most people this does not need to be a big exercise - just note the main points down about the significant risks and what you concluded ".

Last, but not least, reviewing the risk assessment. Overtime workplaces will change there may be new equipment, substances, and or tasks, that have been introduced since the last assessment took place. With this in mind, it's recommended that you look back on past risk assessments and consider if there have since been significant changes, and if so, are there new hazards, and or control measures that should be introduced?

Note : the information provided in this article derives from the HSE, and is correct at the time of publishing. The information here is provided as a guide and as general background information, this article should not be taken as legal advice.

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How to Develop a Risk Assessment Process in 5 Easy Steps

Developing a successful risk assessment process isn't as difficult as it seems. take a look at these five easy steps to learn more..

risk assessment 5 step process

Companies operate in a constantly changing environment, where new risks and threats can arise without warning at any given time. Risk assessment is an essential component of any organization’s governance, risk management, and compliance (GRC) program. Without a structured risk assessment process, your business will likely experience financial losses, reputational damage, and regulatory penalties. By implementing a robust risk assessment process, organizations can recognize potential risks and take proactive steps to mitigate them, ensuring long-term success and sustainability.

Following the five-step risk assessment process below will give your organization a structured approach allowing you to identify, analyze, evaluate, and prioritize risks consistently and systematically. The process is designed to help companies understand the potential impact of risks on their business objectives, determine the likelihood of their occurrence, and develop effective risk mitigation strategies.

Step 1: Identify risks

Risk identification is the first step in setting up an ERM program. Identifying risks involves determining which risks are relevant and have the most impact on the business. Any threat or event that might prevent the company from achieving its objectives can be classified as a “risk.” Identifying and documenting risks ensures your organization can proactively recognize potential threats and take necessary measures to manage or mitigate them. This step helps businesses to develop a comprehensive understanding of the risks they face and prioritize them based on their likelihood and potential impact.

For example, a manufacturing company that produces medical equipment may identify the risk of a supply chain disruption. They can then take measures to secure alternative sources of materials and develop contingency plans in case of any future supply chain disruptions. Failure to identify and mitigate this risk could result in product manufacturing delays and financial losses while potentially impacting the health and safety of patients who rely on the medical equipment.

This exercise allows businesses to “start where they are” by taking an honest look at potential impacts on their business objectives. From there, organizations can optimize risk management efforts and ensure adequate resource allocation while mitigating potentially business-disruptive events. You can also look to common risk assessment frameworks to help guide your risk assessment process.

Step 2: Analyze risks

Analyzing risks enables organizations to better understand the potential impact of identified threats. The second step of your risk assessment process should involve assessing the likelihood of the risk occurring and its potential impact on the organization, often called a risk matrix .

Risk managers may want tohold a risk assessment workshop to align all necessary stakeholders to expedite risk analysis. By prioritizing high-risk areas when working on a risk assessment process, organizations can focus their resources on implementing controls to reduce the likelihood and potential impact of these risks. It also ensures you’ve created a risk register for different functions/business units, scoping which risks and common controls are relevant to that business unit.

Doing so also allows organizations to determine the appropriaterisk management strategiesand prioritize risk treatment activities. For example, you may address low-likelihood risks with minor impacts through simple controls or accept them as part of the organization’s risk appetite. In contrast, high-likelihood risks with severe impacts may require more comprehensive risk management strategies, such as transferring the risk through insurance or implementing additional controls.

When considering your risk assessment process, understanding your organization’s risk threshold is essential in determining the appropriate risk management strategies, prioritizing risk treatment activities, and ensuring the effective and efficient allocation of your organization’s resources. It’s important to note that your risk analysis will be much simpler with centralized risk data and a tool that can deliver simple reports and dashboards to help get stakeholder alignment on the priorities.

Step 3: Evaluate risks

Evaluating risks involves comparing the level of risk against established criteria or standards to determine whether the risk is acceptable or requires treatment. This step helps organizations determine the level of risk and whether it’s within acceptable levels.

Step three of establishing a risk assessment process enables organizations to prioritize risk treatment activities and effectively allocate resources. By evaluating risks, companies can identify and focus their resources on high-priority risks that require treatment while accepting or monitoring low-priority risks that are within acceptable levels.

For example, if a risk is deemed acceptable, your organization may choose to bear it and not take further action. However, if a risk is deemed unacceptable, you may choose to transfer the risk to another party, such as an insurance company, to mitigate its financial impact.

Arguably the most critical step in the risk assessment process, evaluating risks ensures making informed decisions about risk acceptance and risk transfer.

Step 4: Mitigate risks

Mitigating risks is integral to the risk assessment process because it enables organizations to take proactive measures to reduce the likelihood or impact of identified risks. By implementing risk management strategies , organizations can protect their operations, reputation, and customers while also complying with regulatory requirements and building trust with stakeholders.

Let’s consider a small business that operates in a coastal area and relies on its servers and computer systems to operate. As part of their risk assessment process, they may identify the risk of a hurricane or other natural disaster that could potentially damage their servers and result in data loss. To mitigate this risk, the business could take a number of steps, including backing up its data, implementing a disaster recovery plan, and investing in insurance.

By taking these steps to mitigate the risk of a natural disaster, the business can reduce the potential impact of risk on its operations and reputation. This can allow them to quickly restore their data, implement their disaster recovery plan, and ensure their servers and equipment are protected.

Mitigating risks is also important because it enables organizations to meet regulatory and legal requirements. Many industries have specific regulations and laws that require companies to implement certain risk management measures. Implementing this step in your risk assessment process shows that your organization can demonstrate compliance and avoid potential legal and financial penalties.

Step 5: Monitor and review risks

The fifth and final step of the risk assessment process is to monitor and review the identified risks. Monitoring and reviewing risks involves regularly assessing the effectiveness of risk mitigation measures and identifying potential new risks. This helps organizations stay current with changing business environments, threats, and opportunities.

For instance, a financial institution may identify the risk of fraud and implement measures such as internal controls and audit procedures as a means of mitigating those threats. However, as new technologies and business practices emerge, the risk may evolve and become more complex. By regularly monitoring and reviewing the threat during the risk assessment process, the financial institution can identify new trends and patterns that may require updates to its risk management strategies.

Monitoring and reviewing risks enables organizations to continuously improve their risk management processes and identify areas for improvement. By collecting data and metrics on the effectiveness of risk mitigation measures , organizations can identify areas that require improvement and make informed decisions about where to allocate resources.

It’s important to stay current with changing business environments, threats, and opportunities. By regularly assessing the effectiveness of risk mitigation measures and identifying new risks that may emerge, organizations can continuously improve their risk assessment processes and make informed decisions about where to allocate resources.

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By following these five steps, organizations can effectively manage risks and ensure that their GRC program remains effective while providing a structured approach for conducting a comprehensive risk assessment process. Prioritizing risks based on their likelihood and impact and treating and monitoring them allows organizations to effectively manage risks and ensure that their GRC program remains effective.

If you’re looking for a comprehensive and efficient solution for looking at your risk assessment process holistically, Resolver can help. Our platform offers a wide range of tools, reports, visualizations, and resources to help organizations implement an effective GRC risk assessment process. Learn more about how we can assist with your risk assessment process by booking a demo or scheduling an ERM product showcase .

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5 steps to any effective risk management process

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Steps of the risk management process

  • Identify the risk
  • Analyze the risk
  • Prioritize the risk
  • Treat the risk
  • Monitor the risk

While your organization can’t entirely avoid risk, you can anticipate and mitigate risks through an established risk management procedure. Follow this risk management framework to beat the odds and streamline your team for success, making the team more agile and responsive when risks do arise.

What is the risk management process?

It's simply that: an ongoing process of identifying, treating, and then managing risks. Taking the time to set up and implement a risk management process is like setting up a fire alarm––you hope it never goes off, but you’re willing to deal with the minor inconvenience upfront in exchange for protection down the road. 

Identifying and tracking risks that might arise in a project offers significant benefits, including:

  • More efficient resource planning by making previously unforeseen costs visible
  • Better tracking of project costs and more accurate estimates of return on investment
  • Increased awareness of legal requirements
  • Better prevention of physical injuries and illnesses
  • Flexibility, rather than panic, when changes or challenges do arise

Risk management steps

Follow these risk management steps to improve your process of risk management.

1. Identify the risk

Anticipating possible pitfalls of a project doesn't have to feel like gloom and doom for your organization–quite the opposite. Identifying risks is a positive experience that your whole team can take part in and learn from. Project risks are anything that might impact the project’s schedule, budget, or success.

Leverage the collective knowledge and experience of your entire team. Ask everyone to identify risks they've either experienced before or may have additional insight about. This process fosters communication and encourages cross-functional learning.

risk breakdown structure example

Use a risk breakdown structure to list out potential risks in a project and organize them according to level of detail, with the most high-level risks at the top and more granular risks at the bottom. This visual risk management strategy will help you and your team anticipate where risks might emerge when creating tasks for a project.

Once you and your team have compiled possible issues, create a project risk log for clear, concise tracking and monitoring of risks throughout a project.

qualitative risk register example

A project risk log, also referred to as a project risk register , is an integral part of any effective risk management process. As an ongoing database of each project’s potential risks, it not only helps you manage current risks but serves as a reference point on past projects as well. By outlining your risk register with the proper data points, you and your team can quickly and correctly identify and assess possible threats to any project.

2. Analyze the risk

Once your team identifies possible problems, it's time to dig a little deeper. How likely are these risks to occur? And if they do occur, what will the ramifications be? How will you respond?

During this step, your team will estimate the probability and fallout of each risk to decide where to focus first. Then you will determine a response plan for each risk. Factors such as potential financial loss to the organization, time lost, and severity of impact all play a part in accurately analyzing each risk. By putting each risk under the microscope, you’ll also uncover any common issues across a project and further refine the risk management process for future projects.

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3. Prioritize the risk

Now prioritization begins. Rank each risk by factoring in both its likelihood of happening and its potential effect on the project.

This step gives you a holistic view of the project at hand and pinpoints where the team's focus should lie. Most importantly, it’ll help you identify workable solutions for each risk. This way, the risk management workflow itself is not interrupted or delayed in significant ways during the treatment stage.

4. Treat the risk

Once the worst risks come to light, dispatch your treatment plan. While you can’t anticipate every risk, the previous steps of your risk management process should have you set up for success. Starting with the highest priority risk first, task your team with either solving or at least mitigating the risk so that it’s no longer a threat to the project.

Effectively treating and mitigating the risk also means using your team's resources efficiently without derailing the project in the meantime. As time goes on and you build a larger database of past projects and their risk logs, you can anticipate possible risks for a more proactive rather than reactive approach for more effective treatment.

5. Monitor the risk

Clear communication among your team and stakeholders is essential when it comes to ongoing monitoring of potential threats. Send regular project updates to the team and other stakeholders. Check in with your risk managers individually to ensure there aren’t any red flags popping up throughout the project.

Be sure to actively maintain the risk register—it should be a living document that you and your team refer to often. As risks change or evolve, those should be updated in the log for everyone to see. That way, everyone can stay on the same page and respond to risks faster and more proactively.   While it may feel like you're herding cats sometimes, with your risk management plan and its corresponding project risk register in place, keeping tabs on those moving targets becomes anything but risky business.

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Be better prepared and implement a complete risk management strategy.

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Risk Management: A Comprehensive 5-Step Process for Effective Results

Published on - May 16, 2022

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Organizations are constantly striving to be better, safer, and more productive, but today no company is immune to a risk that could directly or indirectly affect its organization. At a time when uncertainty has plagued any organization, security has never been more important in all its aspects and seems to be a pillar of successful business models.

How can organizations effectively implement a risk management process?

According to records compiled by the  Occupational Safety and Health Administration (OSHA) , amputations occur on average twice a week in the meat industry in the United States. This type of incident drastically alters the image of a company . Imagine a multinational food processing company having its name associated with such negative publicity , which will likely earn a citation from OSHA and cause significant financial loss. And what if such a thing is published on social networks , it will cause irreparable damage to the company's brand and public opinion. 

This is the scope of risk management that a company must prepare for in the world we live in today, the following article will guide you through the steps to effectively perform a risk management of this caliber.

Risk Management Process

Risk is any type of uncertainty that can improve or reduce an organization's ability to achieve its objectives. This is a broad topic because risks can take many forms, including risks affecting projects, finances, security and privacy, and the environment .

The risk management process is a defined method for understanding: what risks and opportunities are present, how they may impact the business, and how to respond to them. A company's ability to manage risk better than its competitors will certainly contribute to its success. And the incapacity to do so is synonymous with disaster, perhaps beyond recovery.

These are the reasons why it is important to apply a proven and consistent risk management process . 

The 5 steps of the risk management process

Several institutions have documented how to perform risk management, but possibly the best recognized one is that of the International Organization for Standardization , or ISO . Specifically, the ISO 31000 standard , which is the risk management guideline that provides risk management principles, framework, and process. 

The process is essentially the same for any type of entity and includes  five steps:

1 - Risk identification

The first step in the risk management process is to identify the risks to which the company is exposed to in its operating environment . 

The very first assignment in this step is to review the goals and objectives of the organization and all of the resources or assets that enable them. There are two approaches for that:

  • Top-down approach : it consists in focusing on the critical processes of the company which should not be compromised such as sales transactions or the supply chain. After that, it is necessary to list the conditions which could impair the proper functioning of these processes.
  • Bottom-up approach : this approach consists of identifying the various sources of known threats such as natural disasters, political and economic stability, etc., and then thinking about the impact they could have on the business. 

It is also important for this step to create probable and measurable scenarios for each risk. Using scenarios to describe risk helps to communicate risk conditions and to analyze its likelihood and impact.

Here are the basic elements that help develop risk scenarios: first, identify which valuable assets or resources would be affected; then define the source of threatening actions that would act against that asset; after that, recognize the vulnerability or pre-existing conditions that allow that source of threat to operating; and finally, describe the detrimental impacts that occur from the 

2 - Risk categorization

This step consists of categorizing the risk according to various factors. The previous step will certainly generate a subsequent number of risks. However, by definition, a risk is any uncertainty that affects the objectives. 

Categorization also makes it possible to assign the analysis of each category of risk to the processes that are familiar with it . For instance, risks related to the impact of waste on the environment should be assigned to the environment processes/department.

There are four areas of risk categories: 

  • Strategic risk: they are about brand image and reputation, customer relations and public relationship, etc.
  • Financial risk: they are related to market, tax, recovery, liability, etc.
  • Compliance and governance risk : they are risks related to ethics, regulations, regulation, good practices, etc. 
  • Operational risks: they are related to companies’ data and technology security and privacy, supply chain, worker’s health and safety, natural disasters, etc

The final part of this step is to record the results in a risk register platform . There are dedicated digital tools such as  Integrated Risk Management (IRM) that facilitate this step through an intuitive risk detail template and prioritization. The more impact a risk has, the higher its priority.

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3 - Risk likelihood and impact Analysis

As stated above, a risk is only a risk if it has a probable impact on the business. This step involves analyzing the likelihood of a risk occurring and having a measurable impact .

This step is essentially a calculation of the probability of a risky event occurring and an estimation of the impact of the consequences should it occur. It is important to consider the timing of impact in this step, as there are risks that have an immediate impact and others that have later consequences . 

There are two types of risk analysis methods, qualitative and quantitative risk analysis. Let’s see the main differences between them:

  • Qualitative risk analysis is the process of evaluating or rating risks based on an individual's perception of the severity and likelihood of its consequences. The objective of this approach is to draw up a shortlist of risks that must be given priority over the others.
  • Quantitative risk analysis is the process of calculating risk based on collected data. The purpose of quantitative risk analysis is to further clarify how much the impact of risk will cost the business. This is achieved by using what is already known to predict or estimate an outcome.

Quantitative risk analysis provides more objective information and more accurate data than qualitative analysis because it is based on realistic and measurable data used to calculate the impact values that the risk will create with the probability of occurrence.

Time factors are an important variable in risk analysis and calculation, as well as the frequency of risk events , which is another temporal factor to consider.

Another approach for risk analysis is Risk Value , an estimation of the cost of the risk that is obtained by multiplying the risk probability and the risk impact.

Risk Value = Probability of Event x Cost of Event

The results of the risk analysis make it possible to sort and classify the risks according to their degree. Terms such as "high risk" or "high probability" are the reference used by most organizations to communicate degrees of risk. .

4 - Risks treatment

Risk treatment is the process of selecting and implementing measures to reach an acceptable level of risk. Here are the different approach to this step:

  • Avoidance: this option consists in choosing not to pursue the activity likely to generate the risk, when possible. Alternatively, you can think of another way to achieve the objective or task.
  • Reduction:   this involves reducing the likelihood of the risk occurrence , through various measures such as quality control processes, auditing, compliance with legislation, staff training, etc. Or, to reduce the impact if the risk occurs through emergency procedures.
  • Transfer: if possible, transfer all or part of the risk to a third party through insurance, outsourcing, joint ventures or partnerships.
  • Acceptance/Retention: this option refers to facing a risk if it cannot be avoided, reduced or transferred. Nevertheless, organizations must have plans to manage and fund the consequences of the risk should it occur.

It is important to ensure that the methods applied are both efficient and cost-effective .

5 - Monitor & Review

Monitoring and review should be an integral part of the risk management process and involve regular checking or monitoring to ensure that risks remain within the limits established by the organization's board.

Hence, risk management results should be recorded and reported externally and internally to ensure that managers and senior executives are informed of progress towards risk objectives and changes that may impact the organization.

The entire risk management process should mimic the PDCA (Plan, Do, Check and Act) cycle . Yes, the results should also provide input into the review and continuous improvement of the organization risk management framework.

The long-term success of an organization relies on many elements, ranging from continuously evaluating and updating its offering to optimizing its processes. Through the application of these five steps, organizations can consistently identify the risks that could have a negative impact, then prioritize cost-effective measures to stay one step ahead of opportune risks.

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5 Steps To Build a Risk Management Process for Your Business

What is risk management, why is risk management important, how to identify the risks to your business, what are the five steps of the risk management process, what are the benefits of risk management, how to create a risk management plan, risk management best practices, prepare your business for risk management.

Risk management is a fundamental strategy for most small-and-midsize-businesses (SMBs), who have limited resources and face multiple risks during everyday operations. A systematic approach to risk management can help businesses identify, assess, and mitigate risks to safeguard their operations and ensure long-term sustainability.

Effective risk management helps SMB leaders devise strategies to help their businesses stay ahead of the competition. All steps of the risk management process are crucial to building a safety net that can save your company in adverse market conditions.

Risk management is the process in which businesses identify, assess, and control threats to their capital and earnings. These threats, or risks, can stem from various sources, including financial uncertainties, legal liabilities, strategic management errors, accidents, and even natural disasters.

Risk management is a critical oversight aspect of a business that’s directly tied to a company’s success. Effective risk management means comprehensively understanding potential risks, how they can impact operations, and what steps you can take to mitigate them. For SMBs, where the margin for error is often smaller, risk management isn’t just a protective measure—it’s a strategic function that’s central to the decision-making process.

In a recent Gartner study [1] :

61% of enterprise risk management (ERM) leaders stated it’s important to improve their ability to correctly identify the emergent risks that could be most damaging over the coming 12 months.

47% of senior ERM leaders say being better prepared for these emerging risks over the next 12 months is crucial.

While the primary goal of these leaders is to prevent losses, ERM leaders know that good risk management also involves recognizing the opportunities that can help turn risks into profits. In essence, it’s about ensuring a business can capitalize on potential upsides just as effectively as it can protect itself from losses. This dual focus helps generate balanced, forward-thinking strategies for sustainable growth.

The most critical step in the risk management process is risk identification, which involves a thorough examination of business operations and needs. Businesses need to consistently monitor and audit their requirements to avoid potential issues.

Identifying business risks begins with recognizing where these risks may originate:

Internally: Assess internal processes, from human resources to finance, to ensure there aren’t any weak links in your operations. You should also check for vulnerabilities in your IT infrastructure, potential gaps in employee skills, and singular dependencies on key individuals.

Externally: Consider economic shifts, competitive dynamics, regulatory changes, technological advancements, and natural events to understand where the risk is originating. External risks are often beyond the business's direct control and require careful monitoring and management strategies to mitigate their impact.

Evaluate market dynamics

As an SMB, it is crucial to assess how your business stacks up against others in your industry. You can analyze customer trends and responses to discern your market position and dynamics.

Evaluating market dynamics can include:

Analyzing customer trends

Supply chain reliability

Industry-specific risks

As market dynamics are changing consistently, it is crucial to discern which factors can sway consumers towards or away from certain products, services, or entire industries.

Leverage risk management tools

Risk management tools can range from basic checklists to sophisticated software programs that analyze and predict risk factors using data analytics and business intelligence. With effective risk assessment tools and methodologies, you can identify and proactively assess threat potential.

Identify specific and emerging risks

New competitors in your niche or regulatory changes within your industry can affect your ability to cater to your customers. However, identifying risks requires the right tools and approach.

Some of the best ways to identify risks include:

Reviewing documentation

Documents stating project plans can hold a wealth of project-specific information that can prove helpful when identifying risks. Review all project documentation to ensure all plans are accurate, complete, and consistent. If you find any inaccuracies, missing information, or other discrepancies, these errors could point to risk.

Creating a risk register

Just like a bookkeeper enters every transaction into a ledger, a project manager can maintain a risk register, with details including the kind of risk, root cause, and potential solution. This record can be updated throughout the lifecycle of each project.

Analyzing root causation

Analyzing root causes helps you systematically define the primary cause of a problem and come up with a method of addressing it. The main steps of root cause analysis are:

Stating the problem.

Collecting relevant data.

Determining the factors that led to the problem.

Separating the root causes from factors that are merely symptoms.

Defining actions that can rectify the issue.

Determine solutions that can avoid that problem in the future.

Follow through with those solutions.

When used on an ongoing basis, analyzing root causation helps a business continuously improve.

Identifying emerging risks, however, requires more insight into all aspects of your business, your industry, and the greater market overall. While market influences like a pandemic are impossible to predict, other insights can be gleaned through:

Brainstorm sessions: Gather project teams together for casual discussions on a topic of your choice, and invite all team members to freely share their ideas and perspectives.

Interviews: Invite stakeholders, project teams, and industry experts to interview with you. Though similar to a brainstorming session, interviews are typically a one-on-one discussion in which you ask project-related questions using a structured or unstructured method. The former necessitates proper preparation, and the latter involves on-the-spot conversations.

SWOT analysis: In a , you review the strengths, weaknesses, opportunities, and threats presented to or by a specific project. 

Knowing what makes a project viable and where vulnerabilities may exist helps you uncover possible risks, plan appropriately, and pivot when necessary.

Assess the likelihood of risks

Industries such as financial products, insurance coverage, and healthcare have stiff regulatory and compliance requirements. Consequently, it is important to assess the likelihood of risks so you can remain compliant with regulatory standards at all times.

Plan, prioritize, and apply risk mitigation strategies

Through the approaches listed here, every team member learns more about individual and project-specific expectations. Understanding what’s expected and what internal and external risks exist can help mitigate the chances of harm, keeping your team prepared for uncertainties. Analyzing potential risks and assigning a risk-potential score will help you understand which risks are most probable and could be the most damaging.

Collaborate with team and stakeholders

Involving multiple departments, team members, and stakeholders in your risk management process will give you insights from professionals with varying degrees of seniority and experience. Ensuring smooth communication and collaboration between these employees can ensure proper execution of the risk management process.

Here’s a five-step process for effective risk management that can help mitigate threats in your business operations.

Step 1: Identify potential risks

The first step is to identify potential risks that could affect your business. These should include internal risks within your company and external risks arising from the overall business environment. Legal compliance, environmental factors, market fluctuations, and regulatory obligations should be considered for proper risk identification. You can streamline this process by employing risk management software to increase risk visibility across all relevant stakeholders.

Step 2: Analyze the risks

Next, you should analyze the identified risks to determine how they may impact your business. This analysis should consider how the risks can affect various business functions and how they might disrupt operations. Risk management tools can help map these risks to your business processes, provide a clear view of the potential implications, and help you develop mitigation strategies.

Step 3: Evaluate the risks’ severity

It is crucial to evaluate, score, or rate different potential risks based on their severity. You can use qualitative and quantitative assessments to categorize risks, allowing you to prioritize them effectively. For instance, financial risks can often be quantified and should be assessed using data-driven approaches, while other risks might require a more qualitative analysis.

Step 4: Manage the risk

Once you’ve prioritized risks based on priority and severity, you can act to mitigate them. This involves developing strategies to prevent, transfer, accept, or avoid the risk. Collaboration is key here, and risk management solutions can facilitate communication among stakeholders, ensuring all voices are heard and everyone is aligned on the chosen risk treatment plans.

Step 5: Monitor and review the risk

Running any business involves taking multiple risks every day. Some of these risks are inherent in your business’s path to success. While some are expected risks, they should still be monitored continuously. 

Using digital risk management systems automates this monitoring process, providing real-time updates and allowing for quicker responses to dynamic risk conditions. This ongoing vigilance is crucial to maintain an effective risk management strategy.

Effective risk management can offer numerous advantages to a business, such as:

Enhances decision-making: Understanding the risks can help you make more informed decisions. With effective risk management strategies, you can weigh potential risks against expected benefits.

Ensures resource optimization: Identifying and prioritizing risks helps companies allocate resources more efficiently, focus on areas that require the most attention, and safeguard against significant losses.

Improves planning: Risk management allows for better strategic planning and enhances the ability to identify potential obstacles and opportunities during the goal-setting process.

Builds resilience: Managing risks helps build resilience against external shocks, ensuring that the business can continue operations even when faced with adverse events.

Helps remain compliant: Staying on top of potential legal and regulatory risks helps a business maintain compliance and improves its reputation among its customers, partners, and stakeholders.

Fosters proactive culture: Acknowledging that risks exist and not hiding from them fosters a proactive organizational culture where employees are encouraged to identify and communicate potential problems.

Gives competitive advantage: A robust risk management framework can help a business remain competitive. Implementing risk management terms signals to investors, customers, and competitors that your business is prepared and well-equipped to handle the unknown.

The process to create a risk management plan can be different for every company. Despite being a part of the same industry, different businesses may have to face varying degrees of risks across multiple business areas. According to KPMG’s 2022 Project Management Survey, nearly 44% of organizations claim to have robust project risk management in place, and about 15% of companies don’t have a risk management plan in place. [2]

A risk management plan equips organizations with the means to identify, evaluate, and tackle potential risks before those risks transform into unmanageable issues. Follow these steps to create your company’s risk management plan.

Step 1: Prepare a comprehensive risk assessment

A thorough risk assessment involves evaluating your business and identifying potential risks to your business objectives. To be effective, examine both internal and external risk factors so you can identify risk opportunities you may otherwise overlook.

Assess each risk’s likelihood and establish criteria to assign impact scores. While you need regular monitoring to identify low-priority risks, you may need to act immediately in cases of high-probability, high-impact risks.

Some mitigation strategies can help you create a better risk management plan. These include:

Initiating preventive measures: Examples include clarifying project requirements, ensuring adequate resources, creating quality assurance procedures, and overseeing feasibility studies.

Contingency planning: Examples include putting money into a business savings account, securing backup equipment, and obtaining the proper business insurance coverage.

Risk transfer: An example of risk transfer is obtaining a business insurance policy that provides absolute coverage if a loss occurs. The covered loss’s risk becomes the responsibility of the insurance company.

Risk management software is a valuable asset when conducting a risk assessment. These programs typically offer features such as risk identification, assessment matrices, and dashboard monitoring, helping to streamline your process and ensure a comprehensive risk assessment approach.

Step 2: Assign roles and responsibilities for proactive risk management

Key roles in risk management include:

Risk manager, who oversees the risk management process. A risk manager may be responsible for continuous risk assessment and reporting.

Project managers, who are responsible for implementing strategies in specific assigned projects. They might have to brainstorm mitigation strategies and ensure proper implementation within their projects.

Risk management committee, which is responsible for general oversight and strategic direction. A collaborative risk management committee requires project management programs and team collaboration tools . These solutions help assign tasks, track progress, and facilitate communication among team members.

Step 3: Create a risk management response plan

Your plan should detail your organization's desired risk management response to various scenarios, ensuring proactive risk identification and a swift, effective response. The plan should include:

Required actions defined according to the threat level.

The designated staff members responsible for those actions.

The appropriate communication methods and strategies according to the type of risk event.

A well-developed business continuity plan outlines how your organization will continue operations during and after a significant disruption. It is necessary to regularly review and update this plan to adapt to changing circumstances, both within your organization and in the industry overall.

All staff members should know their risk management roles, appropriate responses to detected threats, and your business continuity process. Risk management training and educational programs help train your employees. You can track their learning progress and ensure they can handle their roles during a company crisis.

Follow these best practices to enhance your risk management efforts.

Involve leadership

Leadership should actively participate in and support risk management initiatives. Their engagement helps businesses foster a culture that values risk awareness and management.

Ensure a comprehensive understanding

Ensure that the risk management process is well-understood across the organization. This includes clarity on procedures, methodologies, and the importance of risk management across all departments and teams working for the business.

Conduct regular reviews

Regular risk assessments and reviews help you keep up with an ever-changing business landscape. This dynamic approach ensures that new and emerging risks do not go unnoticed.

Use technology to your advantage

Risk management software can automate many aspects of the risk management process, from identifying and assessing risks to monitoring and reporting. Selecting the right tool can save you a lot of time and effort.

Encourage collaboration across departments

Different perspectives can lead to a more comprehensive risk profile and innovative mitigation strategies. For instance, frontline employees may see a different side of the business than the C-suite. Likewise, the legal teams can help the business comply with regulatory standards while devising the risk management strategy.

Treat risk management as a continual process

Potential risks are always evolving, and risk management procedures require ongoing monitoring for updates and opportunities to improve. Create an open communication channel via survey or feedback forms where employees can share lessons learned from previous risk management processes.

Foster a culture of positivity

Work towards creating a proactive risk management culture where identifying and managing risk is part of everyone’s role, and no one is reprimanded for pointing out discrepancies.

Look outside

Don’t hesitate to look outside your organization for insights and best practices. This can include industry groups, risk management associations, and professional consultants.

Risk management is not just about avoiding risk—it's an approach to running your business that helps you make informed decisions and devise better plans for the future. By following these five steps, you can create a robust framework to protect your business and get a competitive edge in your market.

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What is the 4th step in the standard 5 step risk assessment?

  • Definitions

A five-step staircase

A five-step staircase

When it comes to assessing and managing risk in a business or organizational setting, it is common to follow a five-step framework for evaluating potential threats and vulnerabilities. The fourth step in this process is a pivotal component in identifying and mitigating risks, and it requires careful analysis and attention to detail. In this article, we will explore the importance of the fourth step in the standard five-step risk assessment process, examine the elements that comprise this critical stage, and provide insights into best practices for completing it successfully.

Understanding the Importance of Risk Assessment

Before we dive into the specifics of the fourth step in the risk assessment process, it is important to first examine the critical role that risk assessment plays in the success and sustainability of any organization. Risk assessment is a systematic approach to identifying, evaluating, and prioritizing risks that could impact an organization’s ability to achieve its objectives. By taking a proactive approach to identifying potential risks, organizations can develop strategies to mitigate these risks and protect against potential damages or losses.

One of the key benefits of risk assessment is that it helps organizations to make informed decisions. By identifying potential risks and their potential impact, organizations can make better decisions about how to allocate resources and prioritize activities. This can help to ensure that resources are used effectively and efficiently, and that the organization is able to achieve its objectives in a timely and cost-effective manner.

Another important aspect of risk assessment is that it helps to promote a culture of risk awareness and management within an organization. By encouraging employees to identify and report potential risks, organizations can create a more proactive and responsive approach to risk management. This can help to reduce the likelihood of incidents occurring, and can also help to minimize the impact of any incidents that do occur.

The Five Key Steps of Risk Assessment

The standard five-step risk assessment process includes identifying potential risks, analyzing these risks, evaluating the likelihood of occurrence and potential impact, prioritizing risks by severity, and implementing strategies to mitigate or manage these risks. Each step is critically important in ensuring that the organization is prepared to respond to potential threats and challenges effectively. The fourth step, however, is particularly vital as it involves prioritizing risks and developing strategies to mitigate or manage these risks.

It is important to note that risk assessment is an ongoing process and should be regularly reviewed and updated to ensure that the organization is prepared for new and emerging risks. This can include conducting regular risk assessments, monitoring changes in the business environment, and updating risk management strategies as needed. By regularly reviewing and updating the risk assessment process, organizations can ensure that they are prepared to respond to potential threats and challenges effectively and minimize the impact of any potential risks.

Defining the Fourth Step in Risk Assessment

The fourth step in the risk assessment process involves evaluating the likelihood of occurrence and potential impact of identified risks and prioritizing these risks based on severity. This step typically involves analyzing data and information gathered during the first three steps of the risk assessment process to determine which risks pose the greatest threats to the organization. The objective is to prioritize risks that require immediate attention and develop strategies to mitigate these risks.

Once the risks have been prioritized, it is important to communicate the findings to relevant stakeholders within the organization. This includes senior management, department heads, and other key decision-makers who can help implement risk mitigation strategies. Effective communication of the risks and their potential impact can help ensure that the necessary resources are allocated to address the most critical risks and minimize the overall impact on the organization.

How to Identify Risks in the Fourth Step of Risk Assessment

Identifying risks in the fourth step of risk assessment involves a comprehensive review of information gathered during earlier steps. This may include reviewing data related to hazards, prior incidents, and organizational objectives. It may also include engaging with stakeholders to identify potential risks and reviewing historical data to identify trends and patterns that may indicate potential threats. Once risks have been identified, they can be evaluated based on their likelihood of occurring and potential impact on the organization.

One important aspect of identifying risks in the fourth step of risk assessment is to consider the potential consequences of each risk. This involves assessing the severity of the impact that each risk could have on the organization, as well as the likelihood of it occurring. This information can then be used to prioritize risks and determine which ones require the most attention and resources.

Another key factor to consider when identifying risks is the potential for human error or intentional harm. This may involve reviewing security protocols and procedures, as well as assessing the reliability and trustworthiness of employees and other stakeholders. By taking a comprehensive approach to risk identification, organizations can better understand the potential threats they face and develop effective strategies for mitigating them.

Analyzing Risks and Determining Likelihood

Once risks have been identified, the next step is to analyze each risk and determine its likelihood of occurring. This typically involves reviewing historical data, analyzing industry trends, and assessing other factors that may contribute to the likelihood of a particular risk. Factors that may influence likelihood include the frequency of the risk occurring, the severity of potential consequences, and the effectiveness of existing controls in place to mitigate the risk. By analyzing risks in this way, organizations can better prioritize potential threats and allocate resources effectively.

It is important to note that determining the likelihood of a risk is not an exact science and involves some degree of subjectivity. However, by using a structured approach and involving multiple stakeholders in the analysis process, organizations can arrive at a more accurate assessment of risk likelihood. Additionally, it is important to regularly review and update risk assessments as new information becomes available or as the business environment changes.

Assessing Potential Impacts and Consequences

In addition to determining the likelihood of occurrence, the fourth step of the risk assessment process also involves assessing the potential impact and consequences associated with each identified risk. This typically involves evaluating potential damages or losses that could occur, as well as any potential indirect impacts such as reputational damage or regulatory fines. By assessing potential impact and consequences in this way, organizations can prioritize risks more strategically and develop effective mitigation and response strategies.

One important aspect of assessing potential impacts and consequences is considering the potential cascading effects of a risk event. For example, a cyber attack on a company’s network could not only result in direct financial losses, but also lead to reputational damage and loss of customer trust. This could then lead to a decrease in sales and revenue, and potentially even legal action from affected customers.

Another factor to consider when assessing potential impacts and consequences is the likelihood of a risk event occurring in combination with other risks. For example, a natural disaster such as a hurricane could not only cause physical damage to a company’s facilities, but also disrupt supply chains and transportation networks. This could then lead to delays in product delivery and increased costs for the company.

Strategies for Mitigating Risks in the Fourth Step

Once risks have been prioritized, organizations can develop strategies to mitigate or manage these risks. Strategies for mitigating risks may include implementing controls or safeguards to reduce the likelihood of occurrence, developing contingency plans to address the potential consequences of the risk if it were to occur, or transferring the risk to a third party through insurance or contractual arrangements. By developing strategies to mitigate risks in this way, organizations can better protect against potential losses or damages.

One important aspect of developing effective risk mitigation strategies is to involve all relevant stakeholders in the process. This can include employees, customers, suppliers, and other partners who may be impacted by the risks. By involving these stakeholders, organizations can gain valuable insights into the potential consequences of the risks and develop more effective strategies to address them.

Another key consideration when developing risk mitigation strategies is to regularly review and update them as needed. Risks can change over time, and new risks may emerge that were not previously identified. By regularly reviewing and updating risk mitigation strategies, organizations can ensure that they remain effective and relevant in the face of changing circumstances.

Common Mistakes to Avoid During the Fourth Step of Risk Assessment

While the fourth step of risk assessment is critical to identifying and mitigating potential threats, there are several common mistakes that organizations should avoid during this process. One of the most common mistakes is failing to prioritize risks effectively, either by overestimating the likelihood of occurrence or underestimating the potential impact. Another common mistake is failing to engage stakeholders effectively or failing to consider potential indirect impacts of a particular risk. By avoiding these common mistakes, organizations can complete the fourth step of risk assessment more effectively.

Best Practices for Completing the Fourth Step of Risk Assessment

To ensure the success of the fourth step of the risk assessment process, there are several key best practices that organizations should follow. These include using a structured and systematic approach to identifying and prioritizing risks, engaging stakeholders effectively throughout the process, and leveraging technology and data analytics to enhance risk analysis and evaluation. By following these best practices, organizations can more effectively identify and mitigate potential risks.

Real-World Examples of How the Fourth Step is Used in Risk Assessment

Finally, it can be helpful to examine real-world examples of how organizations have successfully completed the fourth step of the risk assessment process. For example, a manufacturing company may identify potential risks related to supply chain disruptions and evaluate the likelihood and impact of these risks on their operations. They may prioritize these risks based on severity and develop strategies to mitigate the risk through contingency planning, diversifying their supply chain, or implementing safety stock to reduce the likelihood of disruption. By examining real-world examples, organizations can develop a better understanding of how the fourth step of risk assessment can be used effectively in practice.

The Role of Technology in Enhancing the Fourth Step of Risk Assessment

Advancements in technology have made it easier for organizations to evaluate and manage risk more effectively. For example, data analytics tools can be used to analyze large amounts of data and identify potential patterns or trends that may indicate potential risks. Additionally, workflow automation tools can be used to streamline the risk assessment process and ensure that key stakeholders are engaged effectively throughout the process. By leveraging technology in this way, organizations can better identify potential risks and respond to them more effectively.

Challenges and Limitations of the Fourth Step in Standard 5 step risk assessment.

While the fourth step of the risk assessment process is critical to identifying and mitigating potential risks, there are several challenges and limitations to this step that organizations should be aware of. These may include a lack of data or information necessary to assess risk effectively, the difficulty in predicting low-likelihood, high-impact events, or the potential for bias or errors in the risk assessment process. By understanding these challenges and limitations, organizations can develop strategies to mitigate these risks and ensure that the fourth step of the risk assessment process is completed effectively.

How to Review and Update Your Risk Assessment After Completing the Fourth Step

Completing the fourth step of the risk assessment process is just the beginning of a comprehensive risk management strategy. To ensure ongoing success and sustainability, organizations must review and update their risk assessment regularly to reflect changes in the business environment or new potential threats. This may involve conducting additional data analysis, engaging stakeholders to gather feedback or insights, or implementing new controls or safeguards to address evolving risks. By reviewing and updating risk assessments regularly, organizations can better protect against potential losses or damages.

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5 steps to risk assessment

Risk management is not only necessary, it also has many positive benefits for organisations. 

Risk assessments are the process of identifying potential risks in the workplace and putting measures in place to eliminate or mitigate them. They are a legal requirement in all businesses, and if you have more than five employees, you must document your findings. 

In 2022 the HSE updated their guidance for undertaking risk assessments. So, what are the latest steps you need to follow to complete a risk assessment?

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The FEMA Five-Step Risk Assessment Process

FEMA

  • Cody Martin
  • Individuals + Groups , Organizations , Places of Worship , Schools

The Federal Emergency Management Agency (FEMA) plays a crucial role in helping communities prepare for and respond to natural disasters, emergencies, and potential terrorist attacks. One of the critical aspects of FEMA’s work is conducting risk assessments to identify, analyze, and prioritize threats. The FEMA risk assessment process is a structured approach that helps identify potential hazards, assess their impact, and provide guidance for effective countermeasures.

The first step in the FEMA risk assessment process is the identification and quantification of threats. This includes defining the threat and determining its likelihood by analyzing available information about potential aggressors and their history of hostile actions. The outcome of this assessment results in the definition of the design basic threat, outlining the types and capabilities of weapons the building or infrastructure must be protected against. Additionally, a threat rating is assigned, taking into account the probability of the threat occurring and the potential consequences of its occurrence.

Once the threat is identified, the next step focuses on recognizing the assets that require protection. Assets include the building, people, equipment, and contents, as well as the potential consequences of damage or loss. These assets are categorized based on the impact their incapacity or destruction would have on the overall operation of the facility or community. Critical assets are identified, which encompass the core functions and processes necessary for the building to continue operating and providing services following an attack. This step is essential for understanding the potential vulnerabilities of the infrastructure and determining appropriate countermeasures in the event of a threat.

Identifying and Defining Threats

In the FEMA Risk Assessment Process, the first step is to identify, define, and quantify potential threats. In the context of terrorism, a threat can be any indication, circumstance, or event that has the potential to cause damage or loss to an asset, such as a building, people, equipment, and contents.

Collection of Threat Information

The process starts with collecting information about the aggressors (individuals or groups) known for their hostile actions, tactics, and types of weapons used. Identifying the intentions of these groups and any potential targets is crucial in assessing the risk of terrorist attacks in specific areas or buildings.

Determining Design Basic Threat

Once the threats and their capabilities have been identified, it is time to determine the Design Basic Threat. This defines the required level of protection for a building by specifying the types and capabilities of weapons against which it must be safeguarded. The threat rating is based on the probability of a threat occurring and its consequences.

Threat Rating

The threat rating, on a scale of 1 to 10, is the result of assessing the likelihood and impact of a potential terrorist attack. This numerical rating helps in prioritizing the mitigation measures needed to protect the assets. The higher the rating, the more urgent the need for protection.

To ensure a comprehensive risk assessment, designers should ask key questions such as: What groups or organizations are known? Do they have a history of terrorist acts and what are their tactics? What are the intentions of these groups, and what type of targets do they choose? Answering these questions will guide the development of effective countermeasures to minimize potential damage and loss.

By following these sub-sections in the FEMA Risk Assessment Process, the foundation for a thorough analysis of possible terrorist threats can be ensured. This allows for informed decision-making and adequate preparation to minimize the impact of any potential attacks.

Asset Identification and Evaluation

Asset categories.

The first step in identifying and evaluating assets is to determine the categories they fall into. These typically include the building, people, equipment, and contents, as well as the consequences of their damage or loss . The purpose of this categorization is to help prioritize assets based on the degree of debilitation impact caused by their incapacitation or destruction.

Core Functions Development

Identifying the core functions and processes necessary for a building to continue to operate and provide services after an attack is crucial. This helps in the assessment and prioritization of critical assets, ensuring that essential operations can be restored as quickly as possible. It is important to account for how these core functions are interdependent and the potential cascading effects of their disruption. Furthermore, understanding the vulnerabilities of each core function can help in designing effective risk mitigation strategies .

Critical Asset Infrastructure

Critical asset infrastructure refers to the necessary systems and utilities that support the building’s operation and the delivery of services. This includes elements such as power, water, telecommunications, and access control systems . Thorough identification and evaluation of these critical infrastructures are essential for risk assessment and for determining which protective measures should be implemented. By comprehensively understanding the dependencies and vulnerabilities of these infrastructures, designers can develop strategies to enhance their resilience against potential threats.

In conclusion, effective asset identification and evaluation involve categorizing assets, determining their core functions and vulnerabilities, and identifying the critical infrastructures supporting them. This process is vital in forming the foundation of a robust and comprehensive risk assessment, ultimately contributing to a secure and resilient building design.

Vulnerability Assessment of Assets

The vulnerability assessment process aims to evaluate the weaknesses and susceptibilities of an organization’s assets. This includes examining the potential exposure to threats and evaluating the possible damage that could occur. Vulnerability assessment plays a vital role in understanding how to mitigate risks and protect valuable assets. This section will focus on Asset Exposure and Potential Damage Evaluation.

Asset Exposure

Asset exposure is a critical component of the vulnerability assessment process. In this phase, it is essential to identify all the assets that could be at risk and categorize them based on their importance to the organization. These assets can be physical, such as buildings and equipment, as well as intangible, such as the organization’s reputation and intellectual property.

During the asset exposure phase, some factors to consider include:

  • The location of assets
  • Accessibility and security measures in place
  • Dependencies on other assets or external infrastructure
  • The value of each asset to the organization

By understanding the exposure level of each asset, organizations can efficiently allocate resources and prioritize efforts to minimize vulnerabilities.

Potential Damage Evaluation

After identifying and categorizing assets, the next step in the vulnerability assessment process is to evaluate the potential damage that could occur due to various threats. This involves analyzing the possible impacts on the organization’s operations, finances, reputation, and overall stability.

Some factors that may influence potential damage include:

  • The severity and likelihood of various threats
  • The effectiveness of existing security measures in mitigating threats
  • The potential for cascading or compounding effects from a single incident
  • The recovery time and resources required to restore normal operations

This evaluation helps organizations in developing targeted and effective mitigation strategies to protect their assets, reduce risks, and enhance overall security.

In conclusion, conducting a comprehensive vulnerability assessment of assets is crucial for any organization to understand its weaknesses and susceptibilities. By examining asset exposure and potential damage evaluation, organizations can effectively allocate resources, prioritize efforts, and develop efficient mitigation strategies to protect valuable assets and reduce risks.

Probability and Severity Analysis

Measuring probability.

The first step in FEMA’s risk assessment process involves identifying, defining, and quantifying the threat. This is crucial in determining the likelihood of a potential terrorist attack against a particular asset. To establish a threat rating, designers may inquire about the groups or organizations known to have a history of terrorist acts, their tactics, and their intentions, as outlined in the FEMA risk assessment process .

The threat rating is expressed on a scale of 1-10, which reflects the probability of the threat occurring and the consequences of its occurrence. This numerical value helps in further assessing the risks and guiding the necessary protective measures.

Assessing Severity

Once the probability has been determined, the next step is identifying the assets that need protection. Assets include buildings, people, equipment, contents, and the consequences of their damage or loss. These assets can be categorized by the degree of debilitation impact that would be caused by their incapacity or destruction.

Critical assets comprise core functions and processes necessary for a building to continue operating and providing services after an attack, including infrastructure and utilities. Understanding the severity of impact is essential in determining the extent of protection needed for these assets.

To thoroughly assess the severity, it’s essential to consider the types and capabilities of weapons that might be used in potential attacks as per FEMA’s guidance . The outcome of this analysis is the design basic threat, which informs the protective measures against which a building must be guarded.

By combining the probability and severity of potential threats, designers can accurately determine the risks associated with each asset and implement appropriate mitigation options. This thorough analysis ensures that both the building and its occupants will be as prepared and protected as possible in the event of a terrorist attack.

Implementing FEMA Guidelines

Fema risk assessment recommendations.

The FEMA Risk Assessment Process involves a series of five steps that require a numerical importance rating on a scale of 1-10. The first step involves identifying, defining, and quantifying the threat related to terrorism or any event that could lead to loss or damage to an asset. Designers must gather information on potential aggressors and their tactics, leading to the determination of a design basic threat and threat rating.

risk assessment 5 step process

In step two, the assets that need protection are identified, focusing on the building, people, equipment, and contents. Assets are categorized based on the degree of debilitation impact that would be caused by their incapacity or destruction. Critical assets include core functions and processes necessary for the building’s continued operation.

risk assessment 5 step process

FEMA Guided Strategy Development

After identifying assets, the risk assessment process moves forward based on FEMA guidelines. This includes evaluating vulnerabilities and conducting a risk assessment considering threats and potential consequences. Designers can use the information to develop security measures, which are then evaluated for their effectiveness and cost-efficiency.

Ultimately, the goal of implementing FEMA guidelines is to create a well-rounded security strategy that protects the most critical assets while still considering the constraints of budget and operational requirements. By following the FEMA Risk Assessment Process and adhering to their recommendations, organizations can make informed decisions and design more secure environments.

Frequently Asked Questions

What are the five steps in the fema risk assessment process.

The FEMA risk assessment process consists of five consecutive steps:

  • Identifying, defining, and quantifying the threat
  • Identifying the assets (consequences) that need to be protected
  • Assessing vulnerabilities
  • Calculating risk
  • Considering mitigation options

Each step results in a numerical value that expresses its importance, ranging from 1 to 10.

How is the threat level determined in the FEMA assessment?

The threat level in the FEMA assessment is determined by considering identified aggressors, their capabilities, and their history of hostile actions. This includes the tactics and types of weapons that these threat actors have used in the past. The outcome of the assessment is known as the design basic threat, which outlines the types and capabilities of weapons that the building needs protection against.

What factors are considered when identifying critical assets?

Critical assets refer to the building, people, equipment, and contents that could suffer significant damage or loss following an attack. Factors considered when identifying critical assets include core functions, processes necessary for the building to operate after an attack, and the availability of infrastructure and utilities.

How does vulnerability assessment evaluate potential weaknesses?

Vulnerability assessment evaluates potential weaknesses in the building and its assets by considering factors such as physical security, structural integrity, and accessibility. This process examines how well the identified assets are protected from threats and identifies any areas in need of improvement.

What method is used to calculate risk in FEMA’s process?

FEMA’s risk assessment process calculates risk by assigning numerical importance ratings from 1 to 10 for each step, from threat identification to vulnerability assessment. The overall risk assessment is derived by considering these ratings along with the predicted consequences of an attack and the likelihood of its occurrence.

How are mitigation options selected based on the risk assessment results?

Mitigation options are chosen based on the risk assessment results by weighing the effectiveness of each proposed countermeasure against the identified risks. Decision-makers will prioritize options that are most likely to reduce or eliminate the threat, with consideration given to the cost, feasibility, and potential side effects of each intervention.

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The 5 Step Process to Risk Assessment

The 5 Step Process

Risk assessment is the foundation of health and safety in the workplace.

But, how do you conduct a risk assessment? And, what are the best practices?

Through this painless process, set out in this blog, you can control the risks in your workplace.

In this post, I will break down the 5 key steps of a risk assessment, so, you can ensure your business is working safely.

I will begin by answering a few common questions, before moving on to the process of conducting a risk assessment.

Are risk assessments a legal requirement?

Management of Health and Safety at Work Regulations

The law requires employers to have suitable and sufficient risk assessments for their workplace.

The Management of Health and Safety at Work Regulations 1999 states,

“3.—(1) Every employer shall make a suitable and sufficient assessment of— (a)the risks to the health and safety of his employees to which they are exposed whilst they are at work; and (b)the risks to the health and safety of persons not in his employment arising out of or in connection with the conduct by him of his undertaking”

As an employer, you don’t have to conduct the risk assessments yourself, but you must ensure that a competent person prepares them, and they meet the ‘suitable and sufficient’ criteria.

Note: If you employ fewer than 5 staff members, you don’t have to record any findings. However, you’ll still need to conduct a risk assessment.

So why has it become a legal responsibility? What purpose do they serve?

Let’s take a look…

What is the purpose of a Risk Assessment?

A safer workplace starts with its risk assessments.

Because when you identify your hazards and risks, you can manage them.

They help you to:

  • Discover the hazards in your workplace
  • Determine whether you have suitable and sufficient control measures
  • Ensure your staff have the best possible chance to avoid injury and illness

So, let’s move on the all-important 5 steps.

Risk Assessment: The 5 Steps

Risk assessments are commonly split into 5 stages.

  • Identifying workplace hazards
  • Determining who may be harmed and assessing the risk
  • Evaluating and controlling the risk
  • Recording your findings
  • Reviewing your findings

I will talk about these in more detail below, but, first, a couple of definitions.

Definition of a Hazard – Anything that can cause harm.

Definition of a Risk – The chance someone can be exposed to a dangerous situation.

To put this into context, a risk assessment identifies hazards and evaluates the likelihood these will cause harm and the potential consequences of this harm (i.e. the risk).

With that in mind, we move on to step 1 of a risk assessment.

Step 1. Identifying Workplace Hazards.

Without knowing the hazards in your workplace, you cannot evaluate your risks.

A good place to start is by walking around your workplace and asking yourself what could cause harm.

Think about short-term hazards as well as longer-term hazards.

Then, talk to your employees and get their thoughts. Discuss with them the hazards they face regularly.

Top Tip: Lone workers and those who work off-site need consideration too.

Additionally, you should:

  • Consult your accident books for near-misses and incidents. Are there events that keep recurring?
  • Check manufacturer’s instructions for anything they have outlined.
  • Consider your workplace design. Is the layout of your workplace presenting any hazards?
  • Look at all non-routine activities and unusual conditions faced in your environment.
  • Think about visitors and contractors. What hazards might they face?

Write your observations down before moving on to create a comprehensive list of workplace hazards.

Remember, you do not have to plan for unforeseeable risk. Some hazards you can’t predict because they may only develop after certain incidents. As a result, you can’t plan for them.

So long as you have created ‘suitable and sufficient’ risk assessments, you won’t be liable.

Next, Step 2.

Step 2. Determining who may be harmed and assessing the risk

I n this next step, you need to:

  • Consider who a hazard will harm
  • Decide the consequences of any harm
  • Weigh up the likelihood harm will occur

Ask yourself: Who could be harmed in the event of an accident?

Observations can easily be combined with the first step when you are busy putting together your list of hazards. Give special consideration to those who are at higher risk (i.e. pregnant women, young employees, those with disabilities, etc)

Note down your findings. These observations will help you when assessing the likelihood and consequences of harm occurring.

Next, start using a risk matrix to assess the risk of injury and illness

As discussed, Risk= Likelihood of harm * Consequence of harm.

So, a point scale becomes useful when analysing your risk. Take a look at our example below.

Risk Matrix

By multiplying the likelihood score and the consequence score, you can quantify the level of risk a hazard poses.

For example, if you have spotted a hazard which is:

  Unlikely to cause harm (2), but,

could cause Major injury (4),

the overall risk score equals,

Risk= 2 x 4 = 8

By comparing this to a risk matrix you can see that this risk needs: Action

Step 3. Evaluating and Controlling Risk

After the assessment stage, you need to evaluate each hazard and put control measures in place to manage them.

These measures can either:

  • Reduce the likelihood of harm occurring
  • Reduce the consequence of an event occurring, or,

Here’s where a hazard’s risk score is useful.

Use it when deciding which control measures would be adequate and appropriate.

Which leads on to another important concept – The Risk Control Hierarchy.

Risk Control Hierarchy

Control measures that rely on people following them to the letter are the most fallible.

Therefore, eliminating a hazard is by far the safest thing to do.

However, at times this isn’t appropriate.

So, you’ve got to choose other methods of controlling the risk. This decision should follow the Risk Control Hierarchy.

  • Eliminate the hazard – Cut out the risk at its source.
  • Substituting the hazard – Replace a hazard with a less hazardous one i.e. using working platforms instead of step ladders.
  • Engineering Controls – Reduce the likelihood of someone coming across that hazard i.e. placing guards on machinery.
  • Putting safe systems of work in place – Ensuring safety procedures are in place i.e. supervision of new employees, safety signs, training, reducing the time spent around a hazard, etc.
  • Personal Protective Equipment – Providing employees with PPE that reduces the risk of harm occurring i.e. hi-viz jackets, ear defenders, goggles, respirators, etc.

Risk Control Hierarchy

Weigh up the risk rating against the cost, time and effort of a control measure.

For example, if a risk scores a 2 or 3 on the matrix, it’s probably not appropriate to spend large sums of money to reduce this risk.

A more cost-effective solution, which doesn’t reduce the risk to the same extent, could be the better option.

Decide on the additional control measures you need to put in place for each hazard before moving on.

Then, reanalyse the risk.

Reassessing the Risk

This involves assessing the updated (or, residual) risk to ensure your control measure works.

For example, if a hazard previously had a likelihood score of 3 and a consequence score of 4 , then the total score would have been 12 .

But, now, your control measure reduces the likelihood score down to 1 .

Therefore, reducing the hazard’s total risk rating to 4 . And, switching it from action to monitor.

Complete this for each hazard and move on to the penultimate step.

Step 4. Record your findings

An all-important step!

Time to get all that previous analysis down on paper – if you haven’t already.

When filling out your risk assessment(s), be sure to include:

  • The person conducting the risk assessment
  • Date of assessment
  • Details of location
  • People working in that environment
  • Equipment used in that environment
  • Activities conducted in that environment
  • Existing control measures
  • Proposed control measures
  • Residual risk
  • Date of review

AND then, share these findings with your employees!

Risk Assessment Template

By doing so, your workforce can understand where your workplace risks lie and mitigate the chances of injury and illness occurring.

Download our template to start recording your findings. Or, take a look at some examples here.

Step 5. Review your risk assessments

Risk assessments are a continual process and need reviewing whenever there are changes to your workplace.

This could be the installation of new equipment or a new employee starting work.

Whilst reviewing your assessments, account for any new hazards and remove any redundant hazards from your records.

Additionally, if you identify any new issues or you experience a string of accidents & near misses, it may be time for an update.

As an employer, you are legally required to fill out ‘suitable and sufficient’ risk assessments for your workplace.

And, you must remember to regularly review your assessments.

They exist for a good reason – to ensure everyone has the best chance to go home healthy and happy from work.

In this post, we have seen how a 5-step process can help you create your own risk assessments with ease.

So, take the time to fill them out and you’ll protect your staff and save yourself from prosecution.

If you want to increase your health and safety knowledge, you can take one of our health and safety training courses .

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EU AI Act: first regulation on artificial intelligence

The use of artificial intelligence in the EU will be regulated by the AI Act, the world’s first comprehensive AI law. Find out how it will protect you.

A man faces a computer generated figure with programming language in the background

As part of its digital strategy , the EU wants to regulate artificial intelligence (AI) to ensure better conditions for the development and use of this innovative technology. AI can create many benefits , such as better healthcare; safer and cleaner transport; more efficient manufacturing; and cheaper and more sustainable energy.

In April 2021, the European Commission proposed the first EU regulatory framework for AI. It says that AI systems that can be used in different applications are analysed and classified according to the risk they pose to users. The different risk levels will mean more or less regulation. Once approved, these will be the world’s first rules on AI.

Learn more about what artificial intelligence is and how it is used

What Parliament wants in AI legislation

Parliament’s priority is to make sure that AI systems used in the EU are safe, transparent, traceable, non-discriminatory and environmentally friendly. AI systems should be overseen by people, rather than by automation, to prevent harmful outcomes.

Parliament also wants to establish a technology-neutral, uniform definition for AI that could be applied to future AI systems.

Learn more about Parliament’s work on AI and its vision for AI’s future

AI Act: different rules for different risk levels

The new rules establish obligations for providers and users depending on the level of risk from artificial intelligence. While many AI systems pose minimal risk, they need to be assessed.

Unacceptable risk

Unacceptable risk AI systems are systems considered a threat to people and will be banned. They include:

  • Cognitive behavioural manipulation of people or specific vulnerable groups: for example voice-activated toys that encourage dangerous behaviour in children
  • Social scoring: classifying people based on behaviour, socio-economic status or personal characteristics
  • Biometric identification and categorisation of people
  • Real-time and remote biometric identification systems, such as facial recognition

Some exceptions may be allowed for law enforcement purposes. “Real-time” remote biometric identification systems will be allowed in a limited number of serious cases, while “post” remote biometric identification systems, where identification occurs after a significant delay, will be allowed to prosecute serious crimes and only after court approval.

AI systems that negatively affect safety or fundamental rights will be considered high risk and will be divided into two categories:

1) AI systems that are used in products falling under the EU’s product safety legislation . This includes toys, aviation, cars, medical devices and lifts.

2) AI systems falling into specific areas that will have to be registered in an EU database:

  • Management and operation of critical infrastructure
  • Education and vocational training
  • Employment, worker management and access to self-employment
  • Access to and enjoyment of essential private services and public services and benefits
  • Law enforcement
  • Migration, asylum and border control management
  • Assistance in legal interpretation and application of the law.

All high-risk AI systems will be assessed before being put on the market and also throughout their lifecycle.

General purpose and generative AI

Generative AI, like ChatGPT, would have to comply with transparency requirements:

  • Disclosing that the content was generated by AI
  • Designing the model to prevent it from generating illegal content
  • Publishing summaries of copyrighted data used for training

High-impact general-purpose AI models that might pose systemic risk, such as the more advanced AI model GPT-4, would have to undergo thorough evaluations and any serious incidents would have to be reported to the European Commission.

Limited risk

Limited risk AI systems should comply with minimal transparency requirements that would allow users to make informed decisions. After interacting with the applications, the user can then decide whether they want to continue using it. Users should be made aware when they are interacting with AI. This includes AI systems that generate or manipulate image, audio or video content, for example deepfakes.

On December 9 2023, Parliament reached a provisional agreement with the Council on the AI act . The agreed text will now have to be formally adopted by both Parliament and Council to become EU law. Before all MEPs have their say on the agreement, Parliament’s internal market and civil liberties committees will vote on it.

More on the EU’s digital measures

  • Cryptocurrency dangers and the benefits of EU legislation
  • Fighting cybercrime: new EU cybersecurity laws explained
  • Boosting data sharing in the EU: what are the benefits?
  • EU Digital Markets Act and Digital Services Act
  • Five ways the European Parliament wants to protect online gamers
  • Artificial Intelligence Act

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  1. The 5 Step Process to Risk Assessment

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  2. A Complete Guide to the Risk Assessment Process

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