Risk Management Process
The risk management process aids in the systematic application of management policies, procedures and practices with regards to the activities of communicating, consulting, establishing the context, assessment, treating, monitoring and reviewing risk. Throughout the process, it is extremely important that the various steps and results are communicated accordingly and comprehensively between the parties involved. The HAZARD toolbox focuses on the risk assessment phases comprising identification, analysis and evaluation.
This essential step requires the careful identification of risks based on accurate information. The organization should identify sources of risk, areas of impacts and their causes and their potential consequences. A comprehensive list of risks should be generated in this step, which might negatively affect the achievement of objectives.
This step aims in analyzing the identified risks based on the associated causes and consequences along with their likelihood and severity respectively. The output of risk analysis is used in the evaluation of risks in oder do decide about the risk treatment priorities, and on the appropriate treatment strategies and methods.
This step aims at the prioritization of the identified risk that have been analyzed in the analysis phase. This is in order to assist in making decisions about the risks that need urgent treatment. Risk evaluation involves comparing the level of risk determined during the analysis process with the established risk criteria.