1. Look for Hazard or Opportunity
Identify the hazards that can cause harm or the opportunities for gain that are uncertain.
2. Consequence Assessment
Decide who or what may be harmed or benefited in what ways. Gather and analyze the relevant data. Characterize the consequences and their uncertainty qualitatively and quantitatively.
3. Likelihood Assessment
Assess the benefit of various adverse and beneficial consequences. Characterize these likelihoods and their uncertainty qualitatively and quantitatively.
4. Risk Characterization
Estimate the probability of occurrence, the severity of adverse consequences and the magnitude of potential gains, including attendant uncertainties, of the hazards and opportunities identified based on the evidence in the preceding steps. Characterize the risk qualitatively or quantitatively with appropriate attention to baseline and residual risks, risk reductions, transformations and transfers.