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3.4 The Purpose of Assessing Risk

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Risk assessments can be performed for many reasons and have many purposes. According to the ANSI/ASSP/ISO 31010, Risk Management – Risk Assessment standard, the purpose of risk assessment is to “help people understand uncertainty and the associated risk in this broad, complex and diverse context, for the purpose of supporting better‐informed decisions and actions.” The use of a consistent risk assessment process allows an organization to understand risk levels, compare those risks, and address those with the greatest risk first.

Generally, operational risk assessments are performed by safety professionals to determine the risk level resulting from a risk source (hazard or operation) and apply appropriate risk‐control measures according to the Hierarchy of Controls to reduce risk to an acceptable or tolerable level. Other forms of risk treatment are available to risk management through insurance or other risk financing mechanisms to cover incidents that are not prevented.

Through the use of risk assessment, an organization is able to make better decisions regarding risk and achieve its business objectives. Removing uncertainly by assessing risk allows an organization to manage with a certain degree of confidence.

Risk Assessment

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