Risk Assessment analyses our identified risks to provide us with an overall risk priority.

When we talk about uncertainties, there are two main factors that are taken into consideration.

1. The Likelihood – The probability that the risk is to happen.
2. The Impact – How serious would it be if did happen.

To analyse risk, a scoring system is used based on how likely the identified risk is to occur and how serious the impact would be. This process is known as classification. To aid in our decision as to which category our risk likelihood and risk impact fits into, we should use a combination of judgements from a range personnel throughout the organisation.

Using our classified risks, we use a process known as Risk Mapping to provide an overall risk level.

Risk Assessment also determines methods for prioritising our uncertainties making it easier to decide which risks need to be addressed first.