To understand what a risk assessment is and how it can be conducted, it is important to first distinguish the terms ‘risk’ and ‘hazard’. Risks and hazards often get confused as the same thing, however, they are not the same. Risk is the likelihood of harm in defined circumstances while a hazard is an activity with the potential to cause harm.
Hazardous activities are often part of normal business and therefore organizations are exposed to certain risks. Activities such as flying planes or producing kerosene are typical hazards. A hazard by itself is not harmful but if there is a loss of control over the hazard (or hazardous activity) it can become harmful.
How to conduct a risk assessment
To make sure an organization is in control of their hazardous activities and the damage they can cause, a risk assessment should be conducted. A risk assessment is a procedure where different risks are reviewed, qualified and clarified in a way that makes it possible to determine an adequate action or state to prevent or lower the risk. In turn, this makes it possible to make educated decisions when it comes to risk and risk management.