Risk Assessment | Finance
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Risk assessment is the process of identifying, evaluating, and estimating potential risks in a workplace to take appropriate precautions. It is crucial for preventing harm, protecting the environment, ensuring legal compliance, and averting financial losses. The process involves identifying hazards, analyzing risks, developing action plans, and using tools like a risk assessment matrix to evaluate severity and likelihood.
Risk Assessment | Finance
- 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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