FACTURAN, JHON KARL C.

SPECIALIZATION 2
RISK ASSESSMENT

RISK ASSESSMENT
A risk assessment is a method for locating potential dangers and examining what may
happen if one materializes. The systematic process of recognizing, evaluating, and
controlling risks and threats is known as a risk assessment. A knowledgeable individual
determines the steps that need to be taken to reduce or eliminate risk in the workplace in
every given circumstance.

What to Look for in an Example of a Risk Assessment

 Recognizing possible dangers

The identification of risks should be the first topic covered in a risk assessment example.
One should use the risk assessment example as a guide to identify any potential threats that
might affect the workers or organization.

 Investigating the risks

Each detected threat should be thoroughly investigated using a risk assessment example as
a guide. The risk assessment example should highlight the most effective method of risk
management and be precise about who is actually affected by the risks.

 Risk assessment and plans for risk reduction

The formulation of a series of steps intended to reduce the risks identified should also be
included in the risk assessment example. It ought to take the local authority's laws and
regulations into account. Of course, one may do the assess and manage on your own, but
the best approach is to obtain a risk assessment sample from a reliable source.

 Taking a risk assessment record

An instance of a risk assessment should also demonstrate how the results are recorded.
Even if it's only an exercise in writing, one can't afford to take it lightly. It is crucial to
provide a typical risk assessment example.

 Updates

Regular changes to your risk assessment should be motivated by a good risk assessment
example. Workplace physical circumstances may shift without much warning. Regular
updates to your risk assessment provide you a credible assessment of the company's
performance, showing them if it is advancing or regressing.
 RISK ASSESSMENT

TWO LEVEL OF QUALITATIVE RISK ANALYSIS

The best way to characterize qualitative risk analysis is as a project manager's first line of
defense against threats. It assists in eliminating potential obstacles to the successful
completion of a project, including as vulnerabilities that are unlikely to seriously affect the
project. Project managers can better spend their time and resources by prioritizing the most
dangerous risks first.

1. KISS METHOD
With organizations that lack maturity in risk assessment and smaller projects,
it employs the KISS (Keep It Super Simple) Method. This one-dimensional method
involves classifying hazards according to:

 Very Low
 Low
 Medium
 High
 Very High

The Low, Medium, and High scale, which is more often used, cannot discriminate as well
as this scale.

RISK RISK RATING

Risk A Low
Risk B Very High
Risk C Medium

2. PROBABILITY / IMPACT ASSESSMENT

Use this method often with teams who have expertise with risk assessments and larger,
more complicated projects.
This two-dimensional method rates impact and probability. Probability is the chance that a
danger will materialize. The impact is the result or effect of the risk and is frequently
related to schedule, cost, scope, and quality impacts. Calculate the likelihood and effect
using a scale of 1 to 10.
 RISK ASSESSMENT

Once each risk has been assessed, multiply the probability by the impact to arrive at the risk
score. To use the Risk Score as the primary sort and to rank the risks in decreasing order.

RISK PROBABILITY IMPACT RISK SCORE

Risk A 4 5 20
Risk B 2 8 16
Risk C 5 7 35

LEVEL 3 OF QUANTITATIVE RISK ANALYSIS

A quantitative assessment is a risk analysis that is done with an emphasis on the existing
threats' quantitative levels. You may assess a project's potential risk using a quantitative
risk analysis. This can assist in determining if a project is worth undertaking. Additionally,
it helps in the creation of project management plans since it enables the reduction of some
risks' possibility and the preparation for others that cannot be completely eliminated.

This is the step when risks associated with all plausible hazards (scenarios) that have the
potential to result in unfavorable outcomes like property destruction, human damage, or
fatality are assessed.
The four basic elements include;
i. Hazards identification utilizing formal approach (Level 2, HAZOP etc.)
ii. Frequency Analysis. Based on past safety data (incidents / accidents); Identifying
likely
pathway of failures and quantifying the toxic / inflammable material release.
iii. Hazards analysis to quantify the consequences of various hazards scenarios (fire,
explosion, BLEVE, toxic vapor release etc.). Establish minimum value for damage
(e.g., IDLH, over pressure, radiation flux) to assess the impact on environment.
iv. Risk Quantification: Quantitative techniques are used considering effect / impact
due to weather data, population data, and frequency of occurrences and likely hood
of ignition / toxic release. Data are analyzed considering likely damage (in terms of
injury / fatality, property damage) each scenario is likely to cause.
In order for the analyst and the team to concentrate their risk reduction efforts where they
will be most helpful, QRA gives a way to assess the relative significance of a number of
undesirable outcomes.
 RISK ASSESSMENT

Qualitative Risk Analysis vs Quantitative Risk Analysis

Perform qualitative and quantitative risk analysis are two activities that fall within the
planning process group's knowledge area of project risk management. On the PMP, CAPM,
and PMI-RMP examinations, there may be a question about how well they understand the
distinctions between the two processes.
Quantitative risk analysis utilizes a more restricted usage depending on the kind of project,
the project risks, and the availability of data to use for the quantitative analysis, whereas
qualitative risk analysis should typically be undertaken on all risks for all projects.

Summary
QUALITATIVE QUANTITATIVE
Risk-level Project-level
Subjective evaluation of probability and Probabilistic estimates of the time and cost
impact
Quick and easy to perform Time consuming
No special software or tools required May require specialized tools
 RISK ASSESSMENT

REFERENCES;

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https://www.ready.gov/risk-assessment#:~:text=A%20risk%20assessment%20is
%20a,are%20numerous%20hazards%20to%20consider.

Andales, J. (2022, August 24). Risk assessment: Process, Examples & Tools. SafetyCulture.
Retrieved September 27, 2022, from https://safetyculture.com/topics/risk-assessment/

Risk assessment example: What you should look for. Risk Management Software. (n.d.).
Retrieved September 27, 2022, from https://www.clearrisk.com/risk-management-
blog/bid/32158/risk-assessment-example-what-you-should-look-for

Goodrich, B. (2019, November 19). Qualitative risk analysis vs quantitative risk analysis.
PM Learning Solutions. Retrieved October 3, 2022, from
https://www.pmlearningsolutions.com/blog/qualitative-risk-analysis-vs-quantitative-
risk-analysis-pmp-concept-1

Quantitative risk analysis: What it is and how to use it - indeed. (n.d.). Retrieved October 3,
2022, from https://www.indeed.com/career-advice/career-development/quantitative-
risk-analysis

Gonzalez, Z. (2022, August 3). Qualitative Risk Analysis & Quantitative Risk Analysis.
SafetyCulture. Retrieved October 3, 2022, from
https://safetyculture.com/topics/qualitative-and-quantitative-risk-analysis/