What is the difference between risk assessment and risk management? in context of mechanical engineering?

thank youWhat is the difference between risk assessment and risk management? in context of mechanical engineering?
In the first (Assessment) you simply identify what risks may pertain. In mechancial engineering for example lets say you identify the presence of asbestos in ductwork lagging or fire protection - clearly a risk to health. Access is another issue - mechanical plant at height has to be accessed and maintained - is there any danger of falling?

In the second (Management) you work out how you are going to deal with those risks.
So you would arrange (or recommend) that a specialist asbestos removal operative is employed to remove the lagging under controlled conditions and dispose of correctly. In the case of access - yu would require proper barriers or ladders to be installed.What is the difference between risk assessment and risk management? in context of mechanical engineering?
Assessment is a process of gathering and documenting information about risk. Computer-aided assessment is increasingly employed as a supplement to other forms of assessment. A key advantage in the use of computers is the capability of an interactive assessment to provide immediate feedback on responses.



risk assessment - A "risk analysis" is the process of arriving at a risk assessment, also called a "threat and risk assessment." A "threat" is a harmful act such as the deployment of a virus or illegal network penetration. A "risk" is the expectation that a threat may succeed and the potential damage that can occur.



risk management - The optimal allocation of resources to arrive at a cost-effective investment in defensive measures within an organization. Risk management minimizes both risk and costs.



Risk management involves identifying, analyzing, and taking steps to reduce or eliminate the exposures to loss faced by an organization or individual. The practice of risk management utilizes many tools and techniques, including insurance, to manage a wide variety of risks. Every business encounters risks, some of which are predictable and under management's control, and others which are unpredictable and uncontrollable. Risk management is particularly vital for small businesses, since some common types of losses鈥攕uch as theft, fire, flood, legal liability, injury, or disability鈥攃an destroy in a few minutes what may have taken an entrepreneur years to build. Such losses and liabilities can affect day-to-day operations, reduce profits, and cause financial hardship severe enough to cripple or bankrupt a small business. But while many large companies employ a full-time risk manager to identify risks and take the necessary steps to protect the firm against them, small companies rarely have that luxury. Instead, the responsibility for risk management is likely to fall on the small business owner.



The term risk management is a relatively recent (within the last 20 years) evolution of the term "insurance management." The concept of risk management encompasses a much broader scope of activities and responsibilities than does insurance management. Risk management is now a widely accepted description of a discipline within most large organizations. Basic risks such as fire, windstorm, employee injuries, and automobile accidents, as well as more sophisticated exposures such as product liability, environmental impairment, and employment practices, are the province of the risk management department in a typical corporation. Although risk management has usually pertained to property and casualty exposures to loss, it has recently been expanded to include financial risk management鈥攕uch as interest rates, foreign exchange rates, and derivatives鈥攁s well as the unique threats to businesses engaged in E-commerce. As the role of risk management has increased, some large companies have begun implementing large-scale, organization-wide programs known as enterprise risk management.