Which of the following best describes the purpose of risk assessment?

The purpose of risk assessment is best captured by the process of identifying, analyzing, and prioritizing risks. This systematic approach allows organizations to understand what risks they face, assess the potential impact of those risks, and determine the likelihood of their occurrence. By prioritizing these risks, organizations can focus their attention and resources on the most critical issues that could negatively affect their operations or objectives.

This foundational step is essential in establishing a robust risk management strategy, as it informs decision-making processes and helps organizations allocate resources more effectively to mitigate those risks. Understanding the nature and scope of risks is a prerequisite for developing appropriate controls, responses, and training programs, ultimately contributing to improved organizational resilience.