Wednesday, December 11, 2013

Risk Assessment and Risk Assessment Software

Risk is all around us and in everything we do. When it comes to the professional working world, companies want to minimise risk and any potential threat - a way of doing this is making use of risk assessment software.Risk assessment software is used in a number of different industries whether used to determine financial or safety risks. By implementing a viable software, companies can calculate potential risks and act on them before it becomes a serious threat. By implementing risk assessment software companies can remain compliant, save on cost and increase productivity in the workforce.What is Risk Assessment? As the name suggests, it is basically the assessment of potential risks and forms a pivotal step in the procedure of risk management. Risk management is a procedure whereby risk is identified, assessed and prioritised. The step of the assessment takes into account the quantitative and/or qualitative value of those risks and determines its relation to a situation or recognized threat or hazard.Quantitative Assessment - This kind of assessment calculates two components of the risk: The scale of the potential loss and the probability that the loss will occur.Qualitative Assessment - This type of assessment deals with the calculation of the single loss expectancy of an asset. This is basically the loss of value to asset based on a single incident. The annualized threat of occurrence is then calculated and how often that particular threat would be able to exploit the identified vulnerability. Using this data the annualised loss expectancy is worked out and highlights the loss expectancy over a year period, and how much the organisation could lose based on the potential risk or threat.The methods of the assessment change from industry to industry and can be used to assess financial aspects, environmental or ecological impacts, and health and safety risks. In the engineering sector the assessments are aimed at safety and reliability within the industry, especially the potential threats to life and the environment. Industries that have a long association with risk assessment include the nuclear, aerospace, oil, rail and military industries, as well as medical, hospital, and food industries. Continued assessments are made and monitored to control potential threats and to ensure safety of personnel.The Industries Where Risk Assessment is UsedSoftware has proved beneficial to many industries that have to analyse and assess their risk potential.Health Sector - In the health sector (hospitals, medicine etc) the it is used to quantify the probability of harmful effects to people (individually or groups) from activities. This involves everything from risk of death and illness to environmental assessments.Financial Sector - Audits are very important in the financial sector. In the auditing industry audit risk includes inherent risk, control risk and detection risk. These are all important to determine the effectiveness of a client's controls. Risk assessments are prepared and recommendations are made for improvement.Project Risks - Large scale projects and major programs that are subject to large investment make use of risk assessment to protect the investment. These kinds of projects usually include construction of bridges, tunnels, highways, railways, airports, seaports, power plants, dams, wastewater projects, coastal flood protection, oil and natural gas extraction projects, public buildings, information technology systems, aerospace projects and defence systems. Risks of finance, safety, and social and environmental impacts are assessed and reviewed.With the potential risks and threats for any operation, companies are wise to want to calculate and assess those risks. Software such as this is a viable route to protect a company's interests and safeguards against any unnecessary risks.

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