We can however, assess the likelihood of an incident by using statistics to measure probability in many cases. In practice it is usually sufficient to identify hazards and take appropriate action to minimise the associated risk, based on reasonable expectation of the outcomes of exposure. The term safe is used to denote a situation or condition where there is minimal acceptable risk, i.e. where the risk is tolerable to stakeholders. What is risk management Risk management is the culture, processes and structures that are directed towards the management of potential opportunities and adverse effects. The risk management process is the systematic application of management policies, procedures and practises to the tasks of establishing the context, identifying, analysing, evaluating, treating, monitoring and communicating risk.
Risk assessment is the overall process of risk analysis and risk evaluation.
The objectives of risk analysis are to separate the minor acceptable risks from the major risks, and to provide data to assist in the evaluation and treatment of risks. Risk analysis involves consideration of the sources of risk, their consequences and the likelihood that those consequences may occur. Risk is analysed by combining estimates of likelihood and consequences in the context of existing control measures. A risk analysis is essentially a what if analysis where various scenarios are visualised. It is a proactive activity based partly on experience.