Getting Started with Risk Management
Who is this article for?Ideagen EHS users performinga risk assessment.
Risk edit access is required.
Risk management is a systematic process of identifying, analyzing, and prioritizing risks to minimize and control the probability and impact of potential negative events or consequences.
This involves identifying potential risks and performing actions to achieve a desired outcome.
The following are the steps involved in risk management:
- Risk identification: This involves identifying potential risks that could impact the project, organization, or individuals involved. Risks can come from various sources such as technology, people, processes, and the external environment.
- Risk analysis: Once the risks have been identified, they need to be analyzed to determine the likelihood and impact of each risk event. This step involves assessing the probability of a risk occurring and the impact it could have if it does.
- Risk evaluation: After the risks have been analyzed, they need to be evaluated to determine which risks are most significant and require the most attention. This step involves prioritizing the risks based on their likelihood and impact.
- Risk treatment: In this step, strategies are developed to manage and mitigate the identified risks. The aim is to either reduce the likelihood or impact of the risks or transfer the risk to another party or accept the risk.
- Risk monitoring and review: Once the risk treatment strategies have been implemented, the risks need to be monitored and reviewed regularly to ensure that they are still relevant and that the risk management plan is effective.
Effective risk management helps organizations to reduce the likelihood of negative events and to maximize the chances of achieving their objectives. It also enables organizations to make informed decisions, allocate resources effectively, and minimize losses when risks occur.
Additional Resources
The below resources provide more details on how to work with risk assessments: