Why prioritise risks

Medium priority means attention to detail. The use of specific tools, or processes, such as salamanders and heating appliances might qualify as a medium risk. Risk reduction measures should be specific rather than generalized.

High — this is a situation where substantial efforts have to be made to reduce risk. These risks should be looked at with respect to win the condition begins and when it will end. This is the level of risk where there is a strong need for personal commitment to compliance with fire codes, building codes and NFPA standards. Very High — these risks are simply unacceptable. They are conditions in which work activity may have to be halted or altered until adequate risk mitigation measures are implemented this type of risk may result in work activity being prohibited.

Once the person assigned to do risk assessment has completed this profile should be able to rank the various elements of risk into groupings that can be used to guide day-to-day activities. How do you Rank or Prioritize the Risk?

This is known as the "Risk Model" The left-hand axis of this chart is the probability is something is likely to occur. Risk assessment probabilities and severity of harm Likelihood of harm Severity of harm Slight harm Moderate harm Extreme harm Very unlikely Very low risk Very low risk High risk Unlikely Very low risk Medium risk Very high risk Likely Low risk High risk Very high risk Very likely Low risk Very high risk Very high risk This chart is supported by the definitions of these terms: very likely means that a person is typically going to experience this type of an event once every six months.

They would still be expected to be in compliance with the provisions of fire, building codes and NFPA standards Medium — this is when a set of conditions exists where risk reduction measures should be taken into account. Risk reduction measures should be specific rather than generalized High — this is a situation where substantial efforts have to be made to reduce risk.

High probability Low consequence Probably going to happen, but it does not cause much damage. Managing the adverse impact from one threat occurrence may be possible; managing multiple risks of high impact that materialize at the same time may be beyond the capacity of the organization and therefore needs to be managed much more closely.

If a risk is highly coupled to other risks or seen as likely to lead to other risks materializing whether the risk is the cause or materializes concurrently , such risks are given extra attention and are likely to warrant resources applied to them in hopes of preventing multiple risks from materializing at or near the same time. If risk materializing will actually decrease the likelihood of other risks materializing, then further analysis is warranted to determine which risks become a lower priority to mitigate.

To maximize the use of available resources within the organization, the cost of risk mitigation considers whether the mitigation addresses: [1]. When an uncertainty reaches a particular threshold of likelihood and impact, the company recognizes it as a risk that needs to be mitigated. Using the same criteria and scale enables information to be collected, aggregated and compared enterprise-wide in a manner that is accessible and understandable to previously uninvolved personnel.

A standard scale and common root-cause library will also reveal high-level risks that do affect multiple business areas, making prioritization systematic. When assessing identified risks, we recommend a scale that provides as much detail as possible. Consider the following risk assessment matrix adapted from a Wikipedia page :. For greater insight into your risk register, consider the next risk prioritization matrix, which is the most frequent scale used by LogicManager customers:.

This makes risk prioritization easier and more specific, which in turn allows for more targeted resource allocation. The key is implementing a level of granularity that makes sense for your business and that assists with prioritization. Check out our eBook with 5 steps for better risk assessments here! Risk prioritization is the process of determining which risk you should act upon first. This should be based on the likelihood of a risk and the impact that it would make.