The 5-Step Risk Management Model

The 5-step risk management model offers a continuous, organized decision-making method to guide the risk planning process. This model allows managers to 1) identify risks, 2) assess hazards, 3) develop controls and make decisions, 4) implement controls, and 5) supervise and evaluate changes. The 5-step model forms the basis for deliberate planning, and familiarization further forms a framework for individuals that make risk decisions at the operational phase or tactical level. Step one begins with the identification of hazards associated with a specific activity. A hazard is any real or potential condition that compromises the health and wellness or death of personnel, or damages or destroys equipment and property. During this step, review current plans and tasks associated with

This involves determining the quantitative and/or qualitative factors to estimate the probability and severity of an undesirable state from occurring. Assessments are made by evaluating time, vicinity, scope, or frequency of exposure to a hazard. Severity should be determined with consideration of impact on personnel, equipment, and operational capability, and an estimate of the probability of the hazard occurring should be determined. From there, a comprehensive risk assessment can be determined and a level of risk assigned in relation to severity and probability.
A risk assessment matrix can be used to determine the outcome of a hazard. Levels of risk range from extremely high, high, medium, or low, and are determined based on the probability of occurrence in relation to the severity of the consequence. Severity is broken down into four levels: catastrophic, critical, moderate, and negligible. The probability of the event from occurring is divided into five different levels: frequent, likely, occasional, seldom, and unlikely. The matrix is then used as a visual guide to determine the level of risk and overall