2.- WHAT ARE THE GOALS OF RISK ASSESSMENT?
The main objective of risk management is to increase the probability and impact of positive events and
decrease the impact and probability of negative events.
The basic goals of risk assessment include the following:
- Improve your ability to identify potential riks, threats and opportunities. Identify and manage cross - enterprise risks.
- Apply appropriate methods to estimate the likelihood that a risk occurs, and the uncertainty in that estimate.
- Provide alternative solutions to reduce the risk doing one or more of the following: eliminating any possibility of the risk occurring, reducing the likelihood that the risk occurs or limiting any negative consequences of the risk.
- Estimate the effectiveness of those solutions.
- Establish a informed basis for planning and decision making.
- Improve your risk management controls.
- Improve your organization’s ability to accept the right amount of risk to capture strategic opportunities.
- Enable an integrated response to multiple risks.
- Encourage personnel to identify and treat risk.
- Help you allocate and use risk treatment resources.
- Increase the likelihood that your organizational objectives and goals will be achieved.
- Improve the overall resilience of your organization.
- Enhance your organization’s operational performance in efficiency and effectiveness.
- Help minimize your organization’s surprises and losses.
- Improve the effectiveness of your governance activities.
- Encourage and support continuous organizational learning.
- Improve the trust and confidence of your stakeholders.
- Comply with international norms and standards.