Assessing risk, or risk assessment is essential to many different procedures and workplace routines. It can play a huge role in the implication of a task, or even the safety of a given situation. This is why it’s crucial to understand what the purpose of risk assessment is and the benefits it brings.
As mentioned, risk assessment is quite a broad term that can be used in many different fields. It can be used to apply to investments, for example, the act of assessing the risk being used to determine how worthwhile investment is and any best processes to mitigate risk. In this instance, it presents the upside reward as opposed to the risk profile and it also determines the rate of return that would be necessary to make a particular investment be a success.
A Fire Safety Risk Assessment
A risk assessment also plays a huge role when it comes to fire safety. Fire risk assessment is an in-depth evaluation of a building for fire risks and serves to provide recommendations to eliminate the discovered risks or at least provide solutions to control them. So as you can see, the purpose of a risk assessment in each of these examples is to determine the potential risks in a given situation, and how best to act on the uncovered information.
Risk assessment carries strong benefits. If an event that has an applicable option of a risk assessment is carried out without one being conducted, many elements could be missed which may cause issues later, or even with an instant effect. How about we look at two earlier examples where risk assessment is an option, for context?
Examples of Risk Assessments
Say you’re looking to invest and you choose to carry out no risk assessment whatsoever and you fund a considerable amount of money into the assessment. In doing this, you run the risk of taking this big financial leap and the investment might not even be worthwhile. You might miss a much better opportunity as a result. Not to mention losing some, if not all of your money.
Or what about the context of fire and the essential issue of safety? If a risk assessment was not carried out for these purposes it’s not hard to think of the damage that could be done! Say a fire rips through a building, and yet it could have been prevented had a certain point been picked up in a risk assessment. As you can see, there are some circumstances where risk assessments are 100% crucial.
Every risk assessment for each scenario has different checks that need to be carried out to produce the best results for analysis and work out if the situation being monitored should be pressed on with or not, or determine if changes need to be made (for example in a building) to reduce the chances of danger (such as due to an outbreak of fire).
If you have a role, either work-wise or otherwise it is never recommendable to skip out a risk assessment. After all, it could be the difference between a successful operation and a completely botched one, that could cost anything from loss of money to loss of life.