The first step in a CRM process is to identify any hazards that may occur. This involves ranking any potential hazards in the order in which they may occur. The five categories used to rank hazards are: frequent, likely, occasional, seldom and unlikely.
Once the hazards have been identified, they then need to be ranked based on the severity of the damage they may cause to the specific program, otherwise known as risk. This process uses four categories to rank the severity: catastrophic, critical, marginal and negligible. After this step, the CRM process moves into the second phase, assessing the hazards.