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5 Risk Assessment Examples

 , updated on July 14, 2023
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.
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


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
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