Risk Ratings Explained
A risk rating is a numerical value used to determine the level of risk posed by a specific hazard. Risk ratings assist organisations in prioritising risks that demand immediate action and in identifying the necessary control measures. The Risk Assessment module includes functionality for assigning risk ratings.
Hazards and control measures must be configured prior to creating a risk assessment. During this configuration, severity and likelihood are specified, which together determine the overall risk rating.
Risk ratings are calculated by evaluating how likely a hazard is to occur and the potential severity of its consequences.
Risk ratings are calculated by multiplying the likelihood by the severity.
Example:
The likelihood of a hazard is 3 and the severity is 4, the total risk rating is 12 (3x4).