Get to know Risk Assessment which helps companies gain profits

Risk assessment is an integral part of risk management which involves identifying potential hazards, assessing the probability and impact of risks. This also includes implementing measures to reduce or control risks.

In business, carrying out a risk assessment is one of the strategic efforts that needs to be carried out. Because to gain as much profit as possible, of course there is also a risk of possible losses.

Therefore, risk assessment exists to analyze the risks that a company can bear when making efforts to achieve profits.

Risk assessment is not only carried out for a department. Strategically, employees will often carry out their own risk assessments to understand the potential benefits of a job and its feasibility.

Generally, risk assessments are carried out by the HR team or even have a special team to do it.

Usually companies that have a team to carry out separate risk assessments are large-scale companies.

Does the company you work for have a team that does this? So, is this risk assessment something that must be done? Read this article further so you can understand the concept and can make a plan to apply it in today's workplace!

What is Risk Assessment?

Risk assessment is the process of identifying, analyzing and mapping potential dangers that will be faced by an organization or company. In doing business, all actions will certainly have an impact.

Even things that seem to increase profits can still cause losses in business.

Risk assessment is carried out as an action to prevent the danger of loss within a company when running a business. Preparation of more strategic scenarios needs to be well structured and prepared.

The main goal is, if the worst thing happens, namely a loss, every department involved will know what needs to be done to help the company.

The implementation of risk assessment can be done physically or non-physically. Physical includes; evaluation routes, gathering points, handling of work injuries or accidents.

Meanwhile, non-physical includes; digitally recorded data and also research carried out by the company.

Process of Conducting Risk Assessment

You must be wondering how to carry out a risk assessment after knowing what it means. Will the process of carrying out a risk assessment take up your time when there are other tasks that need to be done?

This is the process carried out in carrying out a risk assessment!

Hazard Identification

The first step taken in a risk assessment is identifying the dangers faced by employees and the company. These things include;

• Natural disasters (floods, earthquakes, hurricanes and many more)
• Biological hazards (diseases in pandemics, food-borne diseases)
• Incidents at work
• Technological danger
• Employee demo
• Interruptions in the supply chain
• Mental health hazards

Look at the place where you work, identify the dangers that are likely to befall the company. Include all aspects of employment including remote workers and non-routine matters such as maintenance and repairs.

Determining Who Will Be Affected

When analyzing an organization or company, think about how your employees will be affected if a danger occurs in the organization.

One of the goals of risk assessment is to obtain minimal losses. So that in the process we can find out who will be harmed and how they will be harmed.

Evaluate Risks and Take Precautions

In the risk assessment that you carry out, of course you can find out the risks that might occur when doing business. Once you know how big the risk is, you can take preventative action.

In the process, risk evaluation helps you reduce the level of risk and which hazards need to be prioritized first.

Documenting Discoveries

If the company where you work has more than 5 employees, it is mandatory to document the results of the risk assessment. The results should also include; the hazards you discovered, who they will impact, and a plan to reduce those risks.

Apart from that, when recording risk assessment results there are things that need to be considered:

• Carry out proper checks on the company you work for
• Determine who will be affected
• Control and deal with obvious hazards
• Initiate risk prevention measures
• Involve staff in the process

5. Review the Assessment and Update it

Companies will continue to change as the business develops, therefore risks can change. After completing the risk assessment, don't forget to review and update it.

The purpose of doing this point is so that you can continue to take preventive measures and know what dangers the company will face. Always review and update the results of the risk assessment process that you carry out so that you stay abreast of developments and remain relevant.

Benefits of Carrying Out a Risk Assessment

Carrying out a risk assessment will help you as a party in the company to provide efforts to prevent losses within the organization.

As business continues to develop, the dangers will become more diverse. Therefore, the benefit of risk assessment is as a preventive measure for companies when they experience serious losses in running a business.

Risk assessment as a strategic process is usually carried out in various departments. Both formally and informally, this is done to understand the impact of actions and minimize risks.

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