When reviewing risks, which factor should be prioritized?

Prioritizing risk involves evaluating both the likelihood that a risk will occur and the severity of its potential consequences. This comprehensive assessment is essential in operational risk management because understanding both dimensions allows for informed decision-making regarding which risks need immediate attention and mitigation efforts.

By focusing on the likelihood of occurrence, one can identify risks that are not only possible but also probable, warranting proactive measures to avoid potential issues. Additionally, considering the severity ensures that risks that could lead to significant harm, loss, or operational disruption are prioritized. This dual focus helps to allocate resources effectively, ensuring that the most critical risks are managed first to maintain safety and operational integrity.

While other options such as financial impact, personnel opinions, and duration are important considerations in the overall risk management process, they do not provide the same foundational insight as the combination of likelihood and severity. Financial impact may influence decision-making but does not fully encapsulate the risks themselves, and opinions can be subjective, which might cloud objective assessments. Likewise, the duration of an operation is situational and may not always reflect inherent risks.