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What is Risk Management?
The Process
Guiding Principles
Step 1
Step 2
Step 3
Step 4
What to do and how to do it?
Expected results and outputs
Step 5
Step 6
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What to do and how to do it?

A: Draw comparisons

To this point in the process, the hazards, events and risks have been analysed. Now the risks will be compared in terms of the values that were developed in Step 3.

Compare the risks while considering the probability and consequence analyses from Step 3. The team will have to arrive at an overall consequence rating from the more detailed assessment of social, economic, environmental and cultural consequences. It is suggested that the team use a simple and convenient consequence scale ranging from very low to extreme, along with the frequency or probability estimates.
  • Consider using a "risk evaluation matrix" to assist in comparing or prioritising the various risks. The chart below in Table 4 is an example for such a display. Combine the frequency and consequence ratings for each risk, as determined in Step 3, into a single value to be entered into the matrix. This chart uses simple qualitative measures such as "very low", "low", "moderate", "major" and "extreme". Other comparators such as numerical values may be used as long as they do not imply an unrealistic accuracy.
  • Because experts and non-experts generally view risks differently, it is important to maintain an open and interactive dialogue with the principal people or groups that may be affected or involved, in order to accurately gauge their level of acceptance of risks.

Table 4: Risk Evaluation Matrix

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