Which term describes the process to comprehend the nature of risk and determine the level of risk?

Which term describes the process to comprehend the nature of risk and determine the level of risk?

• A. Risk analysis
• B. Risk criteria
• C. Risk management
• D. Risk assessment

Answer: (A)

Risk analysis is about understanding what could happen, why it could happen, and how severe it would be, so you can determine the level of risk. It answers questions about likelihood and consequences and yields a risk rating you can act on. The other terms play different roles: risk assessment is the broader process that includes identifying, analyzing, and evaluating risk; risk management is the overall program of applying controls and monitoring risk; and risk criteria are the benchmarks used to judge whether a risk level is acceptable.

Risk analysis is about understanding what could happen, why it could happen, and how severe it would be, so you can determine the level of risk. It answers questions about likelihood and consequences and yields a risk rating you can act on. The other terms play different roles: risk assessment is the broader process that includes identifying, analyzing, and evaluating risk; risk management is the overall program of applying controls and monitoring risk; and risk criteria are the benchmarks used to judge whether a risk level is acceptable.