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Evaluation:
Once all the possible events are identified, the next step in the risk management process is to evaluate the events. As stated previously, the evaluation process would determine the probability of the particular event occurring against the impact the event would have on the business if the event were to occur.
Assessing Probability:
When assessing probability of particular events occurring, a useful basis is the classification of probability into categories.
A method of doing would be as follows:
Level
Descriptor
Description
1
Rare
May occur only in exceptional circumstances
2
Unlikely
Could occur at some time
3
Possible
Might occur at some time
4
Likely
Will probably occur at some time
5
Almost Certain
Is expected to occur in most circumstances
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