Risk assessment is a process used to identify potential hazards and analyze what could happen if a disaster or hazard occurs. It is an inherent part of a broader risk management strategy to help reduce any potential risk-related consequences. The process of risk assessment involves identifying, estimating, and prioritizing risks to organizational operations, assets, individuals, and other organizations, resulting from the operation of an information system. The results of this process may be expressed in a quantitative or qualitative fashion. Risk assessment identifies and analyzes potential future events that may negatively impact individuals, assets, and/or the environment, and makes judgments "on the tolerability of the risk on the basis of a risk analysis" while considering influencing factors.
The risk assessment process is usually conducted by a competent person who systematically identifies, analyzes, and controls hazards and risks present in a given situation. The process of risk assessment varies widely depending on the risks unique to the type of business, the industry that business is in, and the compliance rules applied. The risk assessment process helps identify potential hazards and any business assets put at risk by these hazards, as well as potential fallout if these risks come to fruition.
In summary, risk assessment is a systematic process that involves identifying potential hazards, analyzing what could happen if a disaster or hazard occurs, and prioritizing risks to organizational operations, assets, individuals, and other organizations. The process helps reduce potential risk-related consequences and identifies vulnerabilities or weaknesses that could make a business more susceptible to damage from a hazard.
