Risk in this formula can be broken down to consider the likelihood of threat occurrence, the effectiveness of your existing security program, and the consequences of an unwanted criminal or terrorist event occurring.
This notion is illustrated in Figure 2, which highlights the following four basic components of risk: (1) context, (2) action, (3) conditions, and (4) consequences.
There are at least five crucial components that must be considered when creating a risk management framework. They include risk identification; risk measurement and assessment; risk mitigation; risk reporting and monitoring; and risk governance.
Risk assessments are basically made up of five steps: Identify the hazards. Consider who could be harmed and how. Evaluate the risks and decide on actions to mitigate them.
The risk management process includes five steps: identify, analyze, evaluate, treat, and monitor. You can mitigate risks by avoiding, accepting, reducing, or transferring them.
The main aim of this step in HSE's Management Standards approach is to take the data collection and analysis from the previous step, and talk the conclusions through with a representative sample of employees and work with them to develop solutions.
The risk management process consists of three parts: risk assessment and analysis, risk evaluation and risk treatment. Below, we delve further into the three components of risk management and explain what you can do to simplify the process.
Risk Avoidance–eliminate the exposure completely. Risk Control–reduce chance or size of loss, or make the likelihood more certain. Risk Transfer–via insurance or contractual language. Risk Retention–decide to bear the risk at an acceptable level.
