It's important to know when to apply risk analysis and when it is not warranted.
The two main things to consider are:
- The level of uncertainty in the decision
- The consequences of being wrong
If there is little uncertainty and the consequences of being wrong are minor, such as filling out a travel voucher, risk analysis is not necessary. if there is much uncertainty and the consequences of being wrong are high it is essential to perform an extensive risk analysis.
This chart is helpful in determining when and to what degree to perform risk analysis.
Once you determine that risk analysis is necessary, the next key step is to perform a risk assessment.