5 - Step 2: risk assessment and impact assessment

Abstract

Having a proper risk assessment is critical to a company because it provides management with a systematic approach to prioritizing problems based on criticality and/or risk levels of the issue encountered. This makes it possible to allocate resources where they are truly needed. The lack of risk and impact assessment can result in addressing issues that may not be as critical, which could ultimately result in conducting investigations. By having a program that uses tools such as a probability-impact grid or failure modes effects analysis (FMEA), the seriousness of the problem can be assessed and prioritized. The level of risk that is associated with the problem may affect the actions that are taken. This chapter provides a review of the risk and impact assessment process and tools for how to assess issues based on risk level, which will provide guidance for the scope and extent of investigation and/or corrective action necessary.