Risk analysis in business settings is integral to successful health and safety planning for any business. It’s essential to identify accident and injury risks that are associated with work processes, as this allows companies to design safety approaches that keep employees safe and unhurt.
There are many different forms that risk analysis in business can take. Some methods are more popular than others, but they all tend to be effective in their own way. Here are some of the most common methods for professional risk analysis in business settings.
5 Different Approaches to Risk Analysis in Business
For the sake of simplicity, let’s review the five most popular approaches to risk analysis in business. They are the following:
- The Delphi Technique: This approach is characterized by a “brainstorming”, which utilizes the skills of professional risk analysis experts as well as the core members of a company’s health and safety team. The goal is to visualize what a company faces when it comes to potential threats and vulnerabilities.
- Decision Tree Analysis: A comprehensive approach, this method examines each action within a work process and then extrapolates the outcomes or consequences of these actions. This data then informs methodologies for teams to prepare for these outcomes and to formulate plans to address negative ones by creating relevant policies and procedures.
- Probability and Consequence Matrix: This is a systematic and popular approach that focuses on identifying a company’s threats, risks, and vulnerabilities. These risks are then categorized them according to how severe their risk is and then the impact they would have on the company. An overall severity ranking for each hazard allows companies to prioritize designing responses to those risks.
- SWIFT Analysis: Better known as the Structured What If Technique, this risk analysis method examines how a single change impact the entirety of a work process, especially the risks associated with that work process. Each proposed change is reviewed thoroughly. The most beneficial changes are then implemented.
- Bow-Tie Analysis: Last, this risk analysis method is practical and is ideal for companies that want simple solutions for strategic risk planning. Methodologies include striving to identify any risk events that are relevant to the company, dividing each event into its causes and its consequences, and then designing barriers to prevent causes from leading to those consequences.
Risk Analysis in Business is Key
Whether you decide to use one of the five risk analysis methods detailed above or you decide to choose an alternative, what’s important is that you run risk analysis in business settings regularly. The danger of not spending time and effort in preparing for ways to minimize the risk your employees face while at work is simply too great to ignore.