How Bad Could It Be? – evaluating potential impact and likelihood
You will learn how to review your potential risk events and evaluate their severity based on your assessment of their potential impact and likelihood. The impact of a potential risk event refers to how bad it could be. The likelihood of a potential risk event refers to how frequently it might occur, if ever. Severe events will be those with high potential impact and greater likelihood.
After this part of the process, your task force will be prepared to select the most severe risk events to move forward to the mitigation phase of your risk assessment process.