Importance of Risk Assessment Research Paper Example | Topics and Well Written Essays - 1500 words

Importance of Risk Assessment - Research Paper Example Effective risk assessment is quite crucial to the success of every organization or business activity.Risk assessment requires consistently applying and defining an approach that is tailored to the organization. Any assessment activity begins with the outlay of a plan and scope considering objectives, timing, input, output and responsibility requirements (Wenyuan 21). These responsibilities are assigned to parties that can provide a meaningful perspective on relevant risks. In implementing these responsibilities, one requires input sources which are determined by the information available such as prior assessments, lessons learned and loss data. On the other hand, output requirements are determined based on specific requirements of sponsors and stakeholders. The execution of the assessment process is done once the planning and scoping have been determined. Â  There are several important steps required in carrying out a risk assessment.The first step involves the identification of relevant organization objectives. Identifying relevant objectives provides a basis for ascertaining the potential risks that may have an impact on the achievement of certain objectives. It further ensures relevance of consequential risk assessment and management plan to important organizational objectives. These objectives are usually defined as a number of organizational levels and it is necessary to comprehend how they are formulated. (Vose 12). Moreover, well-formulated objectives are analyzed by considering the weaknesses, opportunities, threats, and strengths.