Risk assessment is a process for identifying

• hazards, potential (future) events which may negatively impact (harm) an individual(s), asset(s), and/or the environment
• likelihood (probability) of those hazards occurring
• consequences of those hazards
• actions (risk reduction methods) which can mitigate these hazardous effects.

As the first stage of a risk assessment process, hazard analysis identifies the situations and events for all potential or foreseeable hazards.

As part of the risk assessment process, judgments may be made "on the tolerability of the risk on the basis of a risk analysis" (i.e. risk evaluation taking into account costs and benefits of further risk reduction). Sometimes risks can be deemed tolerable, meaning the risk "is understood and tolerated .. usually because the cost or difficulty of implementing an effective countermeasure for the associated vulnerability exceeds the expectation of loss."

Results of a risk assessment process may be expressed in a quantitative or qualitative fashion.

Risk assessment forms a key part of a broader risk management strategy to help reduce any potential risk-related consequences.

Rapid technological change, increasing scale of industrial complexes, increased system integration, market competition, and other factors have been shown to increase societal risk since the 90's. As such, risk assessments have become increasingly critical in mitigating accidents, improving safety, and improving outcomes.

More simply, risk assessment consists of an objective evaluation of risk in which assumptions and uncertainties are clearly considered and presented. More completely, risk assessments involve documentation of the risk assessment findings, implementation dates of mitigation methods, and periodical review of the risk assessment (or risk management plan), coupled with updates when necessary.