Risk is the possibility of the occurrence of danger or loss and in business, taking a risk is part of the game. As a business owner, you must have the ability to identify risk factors that can potentially have a negative impact on your business. To achieve this, you need to conduct a risk assessment and use a risk assessment template.

Risk Assessment Templates

What is a security risk assessment?

A security risk assessment is a process where your business would:

  • Identify risk factors and hazards that can potentially cause harm to your business.
  • Analyze then evaluate the dangers associated with the risks you have identified.
  • Determine the appropriate ways of eliminating the risks or at the least, control them if you cannot eliminate them.

This process involves the use of a security risk assessment template and it involves taking a comprehensive look at your work environment to identify the situations, processes, and other things that have the potential to cause harm, especially to people.

After identifying these, you would perform an analysis and evaluation of the likelihood and severity of the risks. Write your findings down on a risk assessment template then decide what steps you should take to effectively control or eliminate the risks.

Risk Assessment Matrix

The importance of risk assessment

Risk assessments are essential and have become part of most safety and occupational management plans. After creating a risk assessment template, you can use it to:

  • Create awareness of risks and hazards.
  • Identify who might be at risk.
  • Determine whether you need a control program for a specific risk.
  • Determine if your existing control measures are enough or if you need to do more.
  • Prevent illnesses or injuries, especially during the planning or design stage.
  • Prioritize control measures and risks.
  • Meet all legal requirements.

What are the 4 elements of a risk assessment?

Creating an information security risk assessment template is essential for all businesses and work environments. They are a sufficient and suitable assessment of risks to the safety and health of your employees.

At some point, you will have to create a risk assessment template to identify all of the risks in your business no matter how small. An effective risk assessment must have the following elements:

  • Asset Identification
    This refers to a full inventory of your business’ assets, both non-physical and physical. Based on this information, you can determine the value of your assets.
  • Risk Analysis
    It is here where you assign both qualitative and quantitative values to risk, the possibility of the risks, and the strategies to minimize them.
  • Risk Livelihood and Impact
    In this section, you will rate the probability of the risk and the impact. You can determine your business’ Annual Loss Expectancy by multiplying the Single Loss Expectancy by the Annual Rate of Occurrence.
    The result you obtained is where your subjective opinions might vary. It’s recommended for your business to just rely on IT experts to make decisions then assign the corresponding values.
  • Cost of Solutions
    Based on what you end up with, in your assessment, you now have the opportunity to justify the budget with your finance department. Just remember that if the solution’s cost outweighs the possibility of the event’s occurrence, you can’t justify it.

Risk Assessment Forms

How do you write a risk assessment?

Many would consider the creation of a business or cyber security risk assessment template to be a challenging task as its implications can have an effect on the safety and lives of people. But if you knew where to begin, you can ease the process of creating your risk assessment matrix template. Here are some steps to help you out:

  • Create the title page
    This section includes the initial details of your report. Generally, the significant details to include here are:
    Who prepared the document?
    This is the name of the risk assessor or the team creating the report. If you’re conducting the assessment, write your own name.
    Who is the document for?
    This ensures that the reviewer reads the right file. This helps in the evaluation of the validity of the document’s contents.
    This is the date when you completed the risk assessment and the document. If you completed the assessment and the document on different dates, include both dates.
    Review Date
    This refers to the specific date scheduled for reviewing the protocols of risk assessment. As a general rule, you would conduct a risk assessment review whenever you make any significant changes to operations.
  • Create the main body
    This is the section of the risk assessment template where you write down the type of risks that exist:
    Physical risk refers to trips, slips, falls, injuries caused by falling objects, and getting caught between machinery.
    Substance risk refers to Injuries caused by flammable, caustic, and toxic materials.
    You can either list these risks separately or in the order in which you identified them.
  • Include the essential information
    There is no standard format that suits all cases. Existing templates may differ depending on several factors like the nature of your business’ operations, the size of your business, and in some cases, the specifications set by governing bodies. Whichever format you follow, include the following:
    Who is at risk
    It is essential to specify the demographic at risk of the identified hazard. For instance, is it the employees at the assembly line, the plant workers or the engineers. When you have the information on who is at risk, it provides you with a good starting point to create an effective initiative for risk reduction.
    Existing control measures
    Determine and include the steps your business is currently following to reduce the risk of injury for the identified parties.
    Necessary improvements or changes to existing control measures
    After going through the current existing measures, you can now write down your own ideas on how to replace or improve the measures to further reduce the identified risks.
    Deadlines and assignments
    Lastly, after you have made the decisions on what control measures you need to replace or improve, you will include in your report the names of the people who will be in charge of the updates along with very specific deadlines. This practice will help improve diligence and accountability.