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14 Risk classification systems > Hazard, control and opportunity risks - Pg. 158

158 Risk Assessment simple framework; facilitates an understanding of the wider business environment; encourages the development of external and strategic thinking; anticipates future business threats; helps identify actions to avoid or minimize impact of threats; facilitates identification of business opportunities. However, there are certain disadvantages associated with the use of the PESTLE analysis as a means of identifying risks. These disadvantages are as follows: can over-simplify the amount of data used for decisions; needs to be undertaken on a regular basis to be effective; requires different people being involved with different perspectives; access to quality external data sources can be time consuming and costly; difficult to anticipate developments that may affect an organization in the future; risk of capturing too much data that makes it difficult to see priorities; can be based on assumptions that subsequently prove to be unfounded.