Which statement accurately describes hazard and risk analysis?

• A. It identifies hazards only after incidents occur and not during planning.
• B. It identifies potential problem areas and is the foundation for any risk management plan.
• C. It is only concerned with financial budgeting.
• D. It replaces the need for an incident action plan.

Answer: (B)

Hazard and risk analysis starts by distinguishing hazards from risk. A hazard is something with the potential to cause harm, while risk combines how likely that harm is with how severe it could be. By systematically identifying where things could go wrong and estimating both likelihood and consequence, you surface the most important problem areas to address. This planning work is done during the design and planning stages and updated as plans change, so you’re preventing problems rather than just reacting after an incident. The analysis then serves as the foundation for a risk management plan, guiding which controls to put in place, how to monitor them, and how to respond if something still goes wrong. It’s not about budgeting, and it doesn’t replace an incident action plan; those tools work alongside hazard and risk analysis, informed by it.