An instrument for estimating the probability of harm occurring from the presence of dangerous conditions or materials at a project site. Risk represents the likelihood and significance of a potential hazard being realized; therefore, a hazard assessment often precedes a risk assessment, or the two are conducted as one exercise. The risk assessment is a flexible method of analysis, a systematic approach to organizing and analyzing scientific information about potentially hazardous activities or about substances that might pose risks under specified conditions. Financiers may require risk assessments for projects involving handling, storage, or disposal of hazardous materials and waste, the construction of dams, or major construction works in locations vulnerable to seismic activity or other potentially damaging natural events. For certain projects, the environmental and social impact assessment (ESIA) report may consist of the risk assessment alone. In other cases, this assessment is part of the ESIA documentation.
Adapted from World Bank, “Operational Manual - OP 4.01 -- Annex A,” 1999, View the Website; Asian Infrastructure Investment Bank (AIIB), "Environmental and Social Framework," 2021, View the PDF.