Evaluate the identified risks using the defined risk parameters. Each risk is evaluated and assigned values in accordance with the defined risk parameters, which may include likelihood, consequence (severity, or impact), and thresholds. The assigned risk parameter values can be integrated to produce additional measures, such as risk exposure, which can be used to prioritize risks for handling.
Often, a scale with three to five values is used to evaluate both likelihood and consequence. Likelihood, for example, can be categorized as:
remote,
unlikely,
likely,
highly likely, or a
near certainty.
Examples for consequences include:
Low
Medium
High
Negligible
Marginal
Significant
Critical
Catastrophic