What should be prioritized when assessing risks?

Prioritizing the severity and likelihood of risks is crucial in risk assessment as it allows organizations to effectively allocate resources and implement controls where they are needed most. By evaluating the potential impact of a risk and the probability of its occurrence, decision-makers can focus their efforts on mitigating the most significant threats first. This systematic approach ensures that the most detrimental risks are addressed, reducing potential harm and improving overall safety and security.

This method also supports a strategic perspective, enabling organizations to avoid becoming overwhelmed by less critical risks that could divert attention and resources. While emotional impact, ease of avoidance, and historical data can inform risk assessments, they do not encompass the comprehensive evaluation necessary for effective risk management. Relying solely on emotional factors or past occurrences may lead to misjudgments in prioritization, whereas a focus on severity and likelihood creates a clear framework for addressing risks based on their real potential to affect the organization.