A-Z Popular Blog Risk Search »
Related Guides
Key Concepts
Related Topics
Risk Management

5 Risk Assessment Examples

 , updated on
Risk assessment is the process of identifying risks and evaluating their probability and impact. Probability is the potential for the risk to occur. Impact is the damage that results from the risk when it does occur. Probability/impact can be modeled as single estimates such as a 4% probability of a $1 million dollar loss. A more sophisticated method is to model probability/impact as a probability distribution that produces a graph of the probability of different levels of losses for a given risk. The following are illustrative risk assessment examples.

Project Management

A project team brainstorms risks with the input of the entire team and required subject matter experts such as an information security professional. They estimate probability and impact for each risk in a probability/impact matrix.

Program Management

An IT program composed of dozens of projects models the risk of projects being late or overbudget using reference class forecasting, a method of comparing projects to historical projects with similar scope and risk profiles.

Equity Analyst

An equity analyst develops indepth knowledge about a company and its industry in order to evaluate risks and rewards associated with a stock. If they downgrade a stock they may provide a list of high level risks associated with the firm in a note to investors.

Risk Analyst

A risk analyst may use statistical analysis to evaluate the risks associated with a particular investment or class of investments. They may use a large number of variables to estimate the probability of losses as a probability distribution. For example, the probability of a 10% loss on a particular investment might be 3% and the probability of a 100% loss might be 0.3%.

Small Business

A small business lists out risks associated with a strategy to open a new retail location. They evaluate probabilities on a scale of 1-4 labeled as "very likely", "likely", "possible", "remotely possible". They evaluate impact on a scale of 1-4 labeled as "disaster", "high", "medium", "low." The business then uses the evaluations to prioritize efforts to avoid, transfer, reduce or accept each risk.


Risk assessment is mostly about identifying risks and assessing their probability and impact in order to calculate or categorize risk exposure. This can get complex if you consider that each risk can have different levels of impact each with different probabilities of occurring.
Overview: Risk Assessment
The process of gathering risk intelligence, identifying risks and evaluating their probability and impact.
Risk assessment is a significant component of risk management - the process of identifying, evaluating and treating risk.
Related Concepts
Next: Probability-Impact Matrix


This is the complete list of articles we have written about risks.
AI Risk
Risk Avoidance
Brand Risk
Budget Risk
Business Risks
Change Risk
Compliance Risk
Concentration Risk
Cost Risk
Country Risk
Credit Risk
Demand Risk
Dread Risk
Economic Risk
Exchange Rates
Existential Risk
External Risk
Financial Risk
Force Majeure
Good Risk
Human Error
Risk Identification
Infinite Risk
Inflation Risk
Inherent Risk
Interest Rates
Internal Risks
Investing Risk
Legal Risk
Liquidity Risk
Model Risk
Moment Of Risk
Natural Disasters
Negative Risk
Operations Risk
Passive Risk
Personal Risk
Political Risk
Process Risk
Procurement Risk
Product Risk
Project Risk
Pure Risk
Quality Risk
Recession Risk
Risk Mitigation
Refinancing Risk
Regulatory Risk
Reputational Risk
Residual Risk
Resource Risk
Revenue Risk
Risk Appetite
Risk Aversion
Risk Examples
Risk Management
Risk Management Process
Risk Matrix
Risk Meaning
Risk Measurement
Risk Taking
Risk Tolerance
Risk Triggers
Risk vs Issue
Risk vs Opportunity
Risk vs Uncertainty
Risk-Reward Ratio
Seasonal Risk
Secondary Risk
Security Risk
Settlement Risk
Risk Sharing
Speculative Risk
Strategic Risk
Strategy Risk
Supply Risk
Systemic Risk
Tactical Risk
Taxation Risk
Technology Risk
Risk Transfer
Unforced Error
Upside Risk
If you enjoyed this page, please consider bookmarking Simplicable.

Business Risks

A list of common business risks.

Risk Treatment

The five things that can be done about risk.

Risk Mitigation

A list of techniques for reducing risk.

Positive Risk

The potential that you'll achieve too much of a good thing.

Dread Risk

Any risk that people have a strong aversion too.

Risk vs Opportunity

The surprising similarities between risk and opportunity.

Risk Management vs Contingency Planning

The difference between risk management and contingency planning.


The common types of uncertainty in decision making and strategy.

Inventory Risk

The common types of inventory risk.

Business Risk Management

An overview of common business risk management techniques.

Risk Management

An overview of the risk management process.

Cascading Failure vs Resilience

An overview of cascading failure and resilience.

Business As Usual

An overview of business as usual.

Risk Mitigation vs Risk Reduction

The difference between risk mitigation and risk reduction.

Risk Control

A list of common risk controls.

Risk Value

A definition of risk value with example calculation.

Risk Impact

The common types of risk impact.

Risk Communication

A definition of risk communication with examples.

Risk Management Process

Overview of the steps in a risk management process.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map