5 Step 1: Establishing the Risk Context What is the organisation’s context for risk?How does this affect the project environment?How are ‘individual’ risk tolerances levelled?Do you use the ‘As Low As Reasonably Possible’ (ALARP) approach?
8 Step3: Risk AnalysisProbability refers to the probability of the event. (This is otherwise known as the likelihood of the risk occurring.)Impact refers to the impact of the event. (This is otherwise known as the consequence of the risk if the event occurs.)
10 Step 3: Risk Analysis (cont.) Impact considered over multiple criteria
11 Step 3: Risk Analysis (cont.) Decision tree analysis
12 Step 4: Risk EvaluationThe purpose of risk evaluation is to assist in making decisions, based on the outcomes of the risk analysis, about which risks need treatment and the priority for treatment implementation.Risk evaluation involves comparing the level of risk found during the analysis process with risk criteria established when the context was considered.Based on this comparison, the need for treatment can be considered. (AS/NZS/ISO 31000:2009)