What is a risk assessment?

A risk assessment is fundamentally defined as a systematic process to identify, analyze, and evaluate risks. This process involves several critical steps. Initially, it encompasses identifying potential risks that may impact an organization, whether they stem from operational, financial, technological, or environmental factors. Once these risks are identified, they are analyzed to understand their likelihood and potential impact on organizational objectives. This evaluation helps in prioritizing risks and determining which ones need to be addressed with appropriate controls and mitigation strategies.

In contrast, the other options focus on different areas such as finance, employee performance, and marketing strategies, which do not align with the core definition and purpose of a risk assessment. A detailed budget analysis pertains specifically to an organization's financial management rather than risk management. The procedure to enhance employee performance through training focuses on human resources and development initiatives, which is unrelated to risk identification or evaluation. Lastly, strategies for marketing a product relate to business promotions and consumer engagement, rather than assessing or managing risks associated with organizational operations.