Speaker 1: Dear students, welcome to Gate Smashers. In this video, I am going to explain what is risk assessment and I will explain this with real-life examples. So guys, quickly like the video and subscribe to the channel. If you haven't done it yet and if you have done it, then you can subscribe and share it with your devices. So let's start, what is risk assessment? So see, this topic comes under risk management. And there are two main terms in risk management. One is to assess the risk and the other is to control the risk. What does it mean to control? Monitoring the risk properly, trying to avoid it, trying to transfer it, means saving things. But we will do those things later. First, it is very important to assess the risk. And what comes in assessing? Identifying the risk, analyzing the risk, prioritizing the risk. What does prioritizing mean? Which risk will have to be set first? Means which one will have to be controlled first? Whose priority is more? Whose priority is less? Now you will think, sir, how will we find out this? It's a simple thing, which can create more damage and which is occurring very frequently. Things like this are coming on a daily basis. So we will try to handle it first. We will try to control it first. And who knows that if it comes, what is the risk that has not yet come, the problem, but it can come. I know that any risk of this type, which has come, still I will not have much damage, so I can give it a little less priority. Or any risk in which I know that it is a very rare occurrence, so I give it a little less priority. So based on various categories, we can handle it. So here mainly the risk comes under assessment. It is a process to rank the risk in terms of their damage. Means how much damage it can control, how much damage it can put on the company. So according to this, we rank the risk. Means we rank it. Determine the average probability of the occurrence value of each risk. So here we calculate two things. First, we calculate the probability that which risk is occurring how many times. Means there can be some risk that is occurring frequently. Like it is occurring on a daily basis. And then there is something that is occurring rarely. Like there is a catastrophic activity, like there is a flood, there is an earthquake. So it is not that the earthquake is coming daily or the flood is coming on a daily basis. No, somewhere some company decides that I should make the office in such a way where these activities are less. So these activities are rare somewhere. But what can come on a daily basis? Let's say there is a bug on a daily basis. There is a rival company, it is trying to do some cyber attack on your company. On a daily basis, someone is trying to put a bug or a virus or someone is trying to put a worm in your system. So that will be kind of more frequently occurring. You can categorize it simply. So the first thing we have to calculate is the probability of occurrence that how many times it is occurring. Second, determine the impact for each component based on the impact assessment matrix. So here we use a matrix, Impact Assessment Matrix. And what are we calculating in that? In that, we actually check the severity value. Means to say that there is an event. Let's say the event is a catastrophic activity. Let's say there is an earthquake. Now you know that the earthquake is occurring rarely. But when it comes, then its effect, its damage will be very massive. Let's talk about such fire. It is not that there is fire on a daily basis in the company. But somewhere risk is made. And the company knows that if something happens to their fire in this way, then your entire database can be lost. Hardware can cause you a lot of damage. So somewhere your severity values have to be calculated somewhere. So for that we have a matrix, which I will show you now. So risk assessment values are determined by the multiplying scores for each probability and severity values. So somewhere how do we calculate? If we have to check that we have to give more priority to this or we have to give less priority to this risk, then for that we have a simple thing. Risk assessment says that check the probability and check its severity. And by multiplying both, a score will come. On the basis of that score, you can prioritize, you can analyze that this is more dangerous, this is less. So according to that, you can make strategies for controlling it. It is a very important point. So here I will show you as an example. Let's say my severity rate means how dangerous it is, how dangerous the risk can be. So let's say negligible, marginal, critical or catastrophic. Means there is a risk of a very dangerous level which can finish the system and in a way of a very negligible level with which there will not be much problem. Such probability that rare occur, unlikely, occasionally occur, likely means on a daily basis or frequently, it is occurring very fast. So in this way, let's say we gave numbering 1, 2, 3, 4, 5, 1, 2, 3, 4, in this way we gave numbering. And now we have to calculate. So to calculate, what does the risk assessment say? Like 5 x 1, what score did it tell? 5 x 1, means multiply both, so it becomes 5. 5 x 2, 10. 5 x 3, 15. In this way, I calculated everything and showed you. Like this one, here 1. What is 1 x 1? 2. Similarly, what is 1 x 4? 4. So in this way you can calculate it. So what is 5 x 4? 20. So what does it mean to say here? Like if 20 is coming to you, score of any particular risk, means that frequency is also very high and its damage is also very high. So brother, it is very dangerous. It is very important to control it first. Whether you try to avoid it or make such a strategy for it that even if it comes, then your loss is minimum. So in this way, it helps you to assess. So this is a simple example, if you have any question in your college university exam, you can answer it very easily. Thank you.