Risk is a very important aspect of any project or undertaking. Risk cannot be completely eliminated, but it can be reduced, therefore risk assessment becomes necessary. Risk Assessment is the process of evaluating, identifying and estimating the level of risk that is involved in a projected activity or undertaking. Copy the link given below and paste it in new browser window to get more information on Risk Assessment:- http://www.transtutors.com/homework-help/finance/risk-assessment.aspx

1. RISK ASSESSMENT

2. WHAT IS RISK ASSESSMENT?
Risk assessment is the process of evaluating, identifying and estimating the level of
risk that is involved in a projected activity or undertaking. Risk assessment is a
careful examination of what, in the workplace, could cause harm to people, so that
employer can take enough precautions to prevent them. For maintaining the health
and safety of business and people one must control the risk involved in it by doing a
risk assessment.

3. WHY IS RISK ASSESSMENT
IMPORTANT?
• It helps in identifying potential risk before it occurs so that preventive measure
can be planned.
• It helps in reducing the level of risk by taking precautions and control
measures.
• Risk assessment also provides a safe working environment to its employees.
• Risk assessment is also helpful in averting major financial loss to the
organization due to disruptions in its operations.
• It helps in protecting the environment and interest of all the stakeholders.
• Legal compliance.

4. PROCESS OF RISK ASSESSMENT
• Identifying the potential hazards
• Analysing the risk
• Action plan
• Documentation of findings
• Review and update

5. RISK ASSESSMENT MATRIX
A risk assessment matrix is a tool that helps in identifying the likelihood or
probability of the risk and the severity of the risk if occurred. Risk assessment
matrix is one of the most important tools for risk evaluation. Risk assessment matrix
is commonly used to determine the size of a risk and whether or not the risk is
sufficiently controlled. Risk assessment matrix is a table where rows show the risks
and columns show their likelihood (probability) of occurrence and their impact.

6. RISK ASSESSMENT TEMPLATE
Potential Hazard Who is at risk? Existing control
measures
Risk rating Preventive
measures taken

7. RISK ASSESSMENT EXAMPLE
Potential hazard Who is at risk? Existing control
measures
Risk
rating
Preventive measures taken
Fire hazard Anyone entering
the premises
No smoking on
premises. Adequate
fire extinguishers
provided and
maintained regularly.
Medium Regular inspections to the
hazard and if there is any
faults, maintenance to be
carried out promptly.
Working in
Chemical zones or
dusty environment
People suffering
from asthma
and allergies,
pregnant
women etc.
Proper masks are
provided to people
working in the area.
Employees suffering
from asthma, allergies,
and pregnant women
are not deployed in the
area.
Medium Availability of Masks, gloves
and first aid box in the area.
Pouring Sodium
Hydroxide solution
from bulk tank
People working
in the process
PPE only Face shield
gloves.
Very High Consider eliminating manual
pouring. Restructure process.

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