Risk Management Step 2: Assess Risks

After working through the time-consuming process of identifying risks to which your organization is exposed, the second step in the risk management process is to assess the risks. This step builds upon the risks that were identified in the first step. Once the risks are identified, the risks must then be classified by how likely the risk may occur and how serious the harm would be if the risk did happen.

The likelihood and the severity of risk can be evaluated looking at many factors. One factor to look at is to review previous incidents and lawsuits involving either your organization or a competitor’s business. Prior incidents are indicators or how frequent or how much damage can be caused, that can adversely affect your organization. Geography is another factor that can impact the likelihood or severity of risk occurring. For instance, environmental factors, like weather, are influenced by geography. Natural disasters, or other changes in weather conditions, can impact competition and travel and should be considered in how likely your organization may be exposed to weather-related risk. Geography also plays a role regarding crime, terrorism, attitude of spectators. These factors may change depending if your organization operates in an urban, suburban, or rural location.

Even the size of your staff, the size of your facility and the number of spectators who come onto your property can impact your likelihood or severity of risk. The more people and property your organization manages equates to more exposure to an increased probability or risk occurring. All of the above factors are just a few that should be considered when calculating the likelihood and severity of risk. Ultimately, the process of assessing the likelihood and severity of risks is a difficult process, but is one in which Nohr Sports Risk Management, LLC can help. Contact us to find out how.