What key factor should be included in risk assessment?

In risk assessment, the key factor that should be included is the likelihood and impact of identified risks. This aspect is crucial because it enables organizations to prioritize risks based on their potential effect on business objectives and operations. By quantifying how likely a risk is to occur and the extent of its impact, organizations can allocate resources more effectively, implement appropriate controls, and develop strategies for risk mitigation.

Understanding both the likelihood and impact allows risk managers to create a risk profile that accurately reflects the organization's risk landscape. This profile helps leadership make informed decisions about where to focus efforts in reducing or managing risks. In essence, assessing these factors provides a comprehensive view of risks, which is fundamental for effective operational risk management.

While employee turnover rates, quality of service provided, and customer satisfaction scores are all important metrics for assessing a company's performance, they do not directly address the inherent risks that may affect operations. Those metrics can provide context or insights into the operational environment but do not serve as the primary elements for a structured risk assessment that responds directly to the potential threats an organization might face.