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Risk assessment is a structured method for identifying, evaluating, and prioritizing risks in projects or organizations. It enables informed decisions regarding risk mitigation and enhances planning and execution.
Use this profile to understand the building block briefly, place it in the model, and switch to the 360° assessment when needed.
Executable approach: can be applied and produces an outcome.
What organizes, connects, or makes decisions possible.
Risk assessment examines which unwanted events could occur, how likely they are, and what consequences they would have.
Risk assessment grew from safety, engineering, and insurance practices that had to evaluate uncertainty and possible loss systematically. It is now a part of risk management and is embedded in organizations through standards such as ISO 31000.
Describe each risk as a combination of event, cause, likelihood, and impact. Assess it first, choose a treatment, and then monitor whether the assumptions and controls still hold.
A possible event states what might happen.
It estimates how often or plausibly the event may occur.
It describes the loss or benefit if the event occurs.
Risk assessment makes uncertainty discussable in projects, products, and operations. It supports prioritization, prevention, and conscious decisions about acceptable exposure.
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