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3.10.1 Consequence Analysis

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The assessment team determines the nature and type of consequences that could result for exposure to a particular hazard or risk source. A single risk source may produce a number of impacts with various magnitudes (levels of severity) and could affect multiple assets or stakeholders. The assessment’s context determines the types of consequence analyzed and stakeholders affected.

Consideration and direction should be given to how certain impacts will be handled. Some risk sources may present a low severity level of consequence but a high likelihood of occurrence, while others may present a high severity, and a low likelihood of occurrence. An organization’s acceptable level of risk (ALOR) will help determine the priorities for these types of risk. As mentioned in ANSI/ASSP/ISO 31010, it may be appropriate to focus on risks with potentially very severe outcomes such as Fatal and Serious Incident (FSI)‐type consequences, as these are often of greatest concern to managers. In other situations, it may be important to analyze both high and low consequence risks separately. Guidance should be established during the development of the context for such decisions.

Risk Assessment

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