Risk Assessment in Finance: A Crucial Step in Securing Belgium’s Future
In 2018, the National Crisis Center (NCCN) embarked on a monumental task - conducting a comprehensive risk assessment for Belgium from 2018 to 2023. The Belgian National Risk Assessment 2018-2023 aimed to identify and evaluate the major risks that could threaten the country over the next five years in a systematic and scientific manner.
The Risk Assessment Process
Stages of the Risk Assessment
- Preparing a list of scenarios
- Expert evaluation of probability and impact
- Estimating the impact of climate change on specific scenarios
- Classifying evaluated scenarios by theme and identifying key risks
Evaluating Scenarios
- Probability score: 1 (unlikely) to 5 (very likely)
- Impact score:
- Human impact: number of deaths, injuries, sick people, and evacuees
- Social impact: disruption of vital services and negative press coverage
- Environmental impact: area affected, damage to ecosystems, and potential recovery time
- Financial impact: potential financial losses, rise in unemployment, and reduction in active companies
Visualization of Results
The report presents the impact score and probability score assigned by the experts. The impact score is depicted in the upper semicircle, while the probability score appears in the lower semicircle.
Key Risks Identified
A total of 32 key risks were identified across 10 overarching themes. The complete results are available for each risk, providing valuable insights into the challenges Belgium may face in the coming years.
Implications of the Risk Assessment
- A risk with a low probability score can still occur
- A risk with a low impact score could have devastating consequences
Conclusion
The comprehensive risk assessment is a crucial step in securing the country’s future and informing national emergency planning policy. The results provide valuable insights into the challenges Belgium may face in the coming years, allowing policymakers to make informed decisions about how to mitigate these risks.
Availability of Results
The complete results of the Belgian National Risk Assessment 2018-2023 are available for each risk, providing a comprehensive overview of the challenges Belgium may face in the coming years.