Risk assessment helps organizations save a lot of expenses. These are ways to predict the occurrence of issues in advance and thus helping the teams function better. So risk assessment is crucial in risk management. If during the assessment some risks are ignored, or if the relationships between the risks and the priorities are ignored the risk management planning might not be efficient. There are common mistakes that are prone to occur during risk assessment and these are the ones that might result in additional expenses.
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Not getting to the root cause of the issues
Many of the assessment teams succeed in identifying the risks. But one thing that matters even more than that is to identify the possible causes, the triggers that can induce the risk. This is a better way to manage risks because when the triggers are avoided, the chances of the risk would also come down. So missing out on understanding what causes those risks is a mistake to avoid.
Solely looking at the legal implications
When we talk about risk assessment the focus is often inclined to identifying issues that have legal implications. There are legal issues associated with every task directly or indirectly. But there should also be a focus on the safety point of view. Some firms simple carry out risk assessments because the reports submitted by risk management teams might be required for documentation purpose. And there might be legal terms that stress the need for certain risk assessment measures like the evaluation of workplace risk. But these are done more than just for the legal causes.
Not planning a periodic evaluation
A risk assessment done once would be good to give the firm a few weak links to work on. The risk management plan should also have clauses about the periodic repetition of the risk assessments. The time period between each assessment might vary depending on the type of risks being studied and the company itself.
Not creating an awareness about risk management
There would definitely be a dedicated team working on assessing and planning on avoiding the risks. But every employee should be involved in the process at some point. There should be a general awareness created about the risks to look out for. A glimpse of the risk assessment reports and education about the ways to avoid those risks would make the process smoother to implement within the organization. At least the concerned teams should be made aware of the observations.