Risk Assessment Process – Statistical Probability
The risk assessment process determines the mathematical and statistical probability of an accident occurring, be it through loss, death, or even environmental hazards. By understanding the possible risks they can therefore be avoided and proper procedures can be introduced to minimize the possibility of any accidents. This can be appropriated through many different resources and applied to any activity that involves some amount of risk. Whether this is for deciding a business strategy, environmental or wildlife planning, home building, or creating safety procedures and prevention methods in the workplace, the risk assessment process remains basically intact but will simply have different requirements as to what questions need to be asked. There are many risk assessment questionnaires online for just about everything and individuals or organizations can create their own by using a template to know where to begin.
Risk Assessment Process – Avoiding Risk
It is important to be as thorough as possible when going through the risk assessment process to ensure the best possible results so that cautionary measures will be the most efficient. If businesses are running a risk assessment then it is a good idea to brainstorm with team members to come up with every worst case scenario possibility of what might happen, this applies to loss of money just as much as it applies to safety procedures. When determining the possible risks one must use every avenue to get to the final result and statistical probability plays a large role as far as what has happened in the past and many other factors to determine a percentage of the likelihood of any event or activity. A comprehensive look into every possible scenario allows for the prevention of the risks involved.
Risk Assessment Process – Preparation for Prevention
By following the protocol of the risk assessment process businesses and organizations are more apt to handle certain situations as they are not only working on how to prevent risk but can also be better prepared if something should happen by contemplating every scenario and its consequences. If a company is looking to make a business strategy for what might be a risky investment, they can determine every possible outcome and decide if it is worth the risk. There are certain risks that are inherent in any activity but may be accepted if those risks are minimal, a great example of this would be skydiving as the risk is quite obvious but the probability of the risks are very low. We do the same when we drive a vehicle as we take into account the possibility of a car wreck but accept the risk for the reward of being able to get from one place to another in a minimal amount of time. The risk assessment process provides the possibility to set up a comprehensive procedure to avoid risk as much as possible and help to reduce the percentage and statistical probability of the worst from happening.