Risk assessment describes the overall process to identify hazards and risk factors that have the potential to cause harm. Analyze & evaluate the risk associated with that hazard (risk analysis, and risk evaluation). Determine appropriate methods to remove the hazard, or control the risk when the hazard cannot be eliminated. A risk assessment is an exhaustive look at the workplace for identifying things, situations, processes, etc. which may cause harm, particularly to people. After the identification is made, to analyze and evaluate how likely and severe the risk. When this determination is made, the next decision on what measures should be taken in place to effectively eliminate or control the harm from happening. The risk assessments are one of the very important steps as it forms an integral part of occupational health and safety management plan.
The risk assessment and decision parameters assist in the following areas:
- Creating awareness of hazards and risks.
- Identifying the risk associated with employees, visitors, contractors, the public, etc.).
- Creating a control of the program which is required for developing a risk-free environment.
- Determining the control measures which are adequate and whether anything more should be done.
- Design or plan and isolating and examining the potential future events which may negatively impact the business value chain.
- Providing favorable and reliable information for decision-making.
- Decision making comprises objective conclusions of consequences and related uncertainties based on existing information which can analyze the necessity of reducing uncertainty and considering the risk assessment phase from the perspective of decision-makers.
Business Risk is impacted by different factors including:
- Consumer likings, demand, and deals
- Price per unit and input costs
- Competition
- Economic scenario
- Government Regulations
Decision Making Analysis in Risk Assessment
Risk management is defined as the in time activities that directs and controls the organization to risk by assessing the appropriate standards. Thus business risk mentions any tentative event or set of events that may occur or further have an effect on the achievement of the objectives. The risk and decision making are the important organizational activity which assists in identifying and assessing the unknown market impacts and making suitable decisions in response to such risks.
Assessment is one of the ubiquitous and has a close relation associated with risk management on one side and appropriate decisions assure appropriate tasks for implementation on the other side. Moreover, the risk management process in decision making is a key step for better decision making. Different uncertainties, that happen in natural environments and human societies increases the possibility of making inappropriate decisions. Every decision-making process gives a final choice, which may or may not prompt action. Step-by-step the method provides in decision making can also assist in taking decisions by organizing relevant information and defining appropriate alternatives. This approach enhances the chances that you will choose the most satisfying alternative possible. In a supervision setting, the decision cannot be taken abruptly. It should follow the steps such as.
- describing the problem
- collecting information and gathering data
- Emerging and pondering the options
- Selecting the best possible opportunity
- Strategies and executions
- Taking Follow up actions
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