Service Description

Five steps to risk assessment

All risk assessments follow the same basic five steps, even though the steps are sometimes described using different jargon or slightly modified to better meet the needs of different organizations.

Step 1: Risk identification. The first stage of the risk assessment is aimed at identifying all risks that can harm the organization and negatively affect its goals. There are a number of risk identification methods that can be used to complete this step.
Step 2: Risk analysis. Having identified the risks, it is time to analyze them and determine their probability and consequences. At the end of this step, the organization should better understand the risks it faces and be aware of their potential impact on the goals and objectives of the project.
Step 3: Risk ranking. The next step is to rank the detected risks according to the magnitude of their potential impact. Some risks may have such a huge potential negative impact that they are not worth it, while the impact of other risks may be negligible.
Step 4: Risk response planning. Starting with the highest-ranking risks, the goal is to develop a plan that would minimize their likelihood and impact.
Step 5: Review the risk assessment. As organizations are constantly evolving, it is necessary to regularly review and update the risk assessment in order to maintain its relevance and usefulness.