The primary purpose of risk assessment is to evaluate the consequences if a business investment or action fails. Company leaders typically want to avoid new investments or projects when the threats are catastrophic or when they outweigh potential rewards, according to PricewaterhouseCoopers.
The occupational health assessment is used to advise management on an employee’s health issues in relation to their work, and to make recommendations on reasonable adjustments that could be considered to ensure a safe/healthy working environment for that employee.
Assessing risk is essential for determining how worthwhile an investment is and the best process(es) to mitigate risk. It presents the upside reward compared to the risk profile. It also determines the rate of return necessary to make a particular investment succeed.