Risk Assessment Tools are developed to help you be the best in risk management. Because with these tools, solutions are readily on hand. So why not invest with these?
The Need For Risk Assessment
Risk assessment is a form of system maintenance. So if you want to maintain the optimum state of your system. Then you should invest with regular risk assessment.
Risk Assessment basically involves three major factors. Namely, the following:
- Identification of risks
- Analyzation of identified risks
- Evaluation of risks
The better you do with these steps, the better you manage risks.
Risk Assessment Tools
However, a business does not run by merely managing risk. Thus, this maintenance task may at times fall in complexity.
So what can help?
Being an expert plumber, for instance, needs to know the right tools. Because no matter how good you are. You will never reach the optimum state without the right tools.
Let us further discuss some of these.
Risk Matrix
The Risk Matrix is basically one of your must-haves in your risk assessment toolbox. Moreover, you can make use of putting a quantitative risk value on hazards. These therefore can be filtered. That is through company policies.
The following are the benefits of Risk Matrix:
- Be more consistent in prioritizing risks
- Drive better and data-driven decisions in response to risks
- Have a holistic view of the risks and hazards
Decision Tree
This tool is often overlooked in risk management. However, the Decision Tree is still handy and useful.
Most especially in deciding the application of compliance with policies. Also, the Decision Tree tool is most helpful in choosing several options of responses.
How It Works:
Like a tree, this tool will provide branches. That is branches of outcomes. Because this tool will help you weigh between a variety of options. So it will also let you see the possible outcomes of such decisions.
So if you’re working on decisions, then this tool is perfect for you.
FMEA
FMEA stands for Failure Modes and Effects Analysis.
This can help you better see the possible failures. For instance, of a process, product, or design. Thus, this can help you decide on which worst-case are you willing to invest in.
FMEA works by helping you map out the following:
- Current controls and detection means
- Needed actions and details in relevance
- The effects it brings on your processes and system
- Lets you see the potential failures and causes
Bowtie Model
This is usually used by high-risk industries. For example, those who handle harmful chemicals, oil, and also gases.
However, today this method is gaining more popularity. Because many find it helpful in gaining a holistic view. Most importantly of a complex risk environment.
Bowtie Model Works By:
- The middle- or the center of the diagram tells the hazard or risk.
- Left side- presents the preventative controls and measures
- Right side- the recovery controls. These are presented for instance the hazard will occur
On the other hand, know that there is a big difference between risk assessment and risk management.
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