What does the 'Asses Hazards' step primarily involve?

The 'Assess Hazards' step primarily involves evaluating risks and consequences, which entails analyzing potential hazards to determine their likelihood and impact on the organization. This step is crucial for understanding the severity of various risks associated with operational processes and enabling informed decisions about how to mitigate those risks effectively. By assessing the hazards, organizations can prioritize which risks require immediate attention, taking into account both the probability of occurrence and the potential repercussions on operations, finances, and reputation.

Understanding this step is essential for creating a robust operational risk management framework, as it lays the foundation for identifying appropriate control measures and developing strategies to manage the identified risks.