This stage of the assessment should consider, for each identified hazard, what the result of the hazard occurring i.e. what effect it may have on an exposed individual or population. It is anticipated that the range of consequences will fall between those that are negligible and self-limiting and those that would be severe, either having an immediate and serious effect or possibly leading to long term, permanent harmful consequences.

The following descriptive table is used to categorize and rank the consequences of an incident:
 
To determine the consequences, the severity of the potential outcome must be sensibly judged. Any information gathered during the identification stage, including incident statistics and manufacturer’s data should be reviewed.

The following factors can affect the consequences are also considered:

   potential for "chain reaction". where a hazard, if not eliminated, evolves and compounds into an even more dangerous
      situation;

   concentrations of substances. For example, a minor injury might result because of a dilute chemical, while a fatality might
      result from a concentrated form of the same chemical;

   volumes of materials. For example, the potential consequences of a leak of a small amount of a particular chemical, such as
      ammonia, into the workplace may be relatively minor, compared with the potential consequences of the release of a large
      amount of the same chemical;

   speeds of projectiles and moving parts;

   heights. The force with which a falling object hits a person (and hence the potential injury), will generally increase the greater
      the distance it falls. Similarly, a person will, in general, sustain greater injuries if falling from a greater height;

   position of the worker relative to the hazard. For example, workers working close to a chemical processing unit are likely to
      incur greater damage than those working further away;

   forces and energy levels. For example, the higher the voltage of electricity and the possibility of a high current flowing
      through a person, the more severe the consequences are likely to be;

While doing the ranking, it should be kept in mind that it is often difficult to compare the actual consequence or the degree of impact consistently across different natural and socio-economic environments and a certain amount of subjectivity always finds its way into the evaluation process.

The significance of the impact in this system of evaluation would be expressed as the product of the consequence and the likelihood of occurrence of the activity, expressed as follows:

Significance = Consequence * Likelihood

The objective risk evaluation can be carried out by using a standardized Risk Matrix methodology on a two dimensional plane with probability on one axis and the potential severity of consequences on the other.

The risk scenario’s containing hazards with a low probability and limited consequences can be discarded at an early stage of the evaluation. However, it is important that the selection of such scenarios be done carefully.

It is also always useful to know the potential worst case scenario of a particular hazardous situation. But the worst case scenario is often considered to be so improbable that smaller and more credible event (called the Maximum Credible Loss Scenario or MCLS) is taken as a basis for ranking of risk and delineation of safety measures. Once the overall evaluation of technological risks in a community has been carried out, it is important to present the information to the decision makers in a manner that they can comprehend the severity of the risk scenario and can thereby formulate appropriate plans to bring the risk down to “acceptable” limits. It thus assumes significance that the overall results of the analysis and most important information be presented on a overall “risk map” together with associated threatened elements at various times.