Risk Analysis
Definition
Risk Analysis (also Risk Assessment) is a set of analytic and/or quantitative activities that supports Risk Management that may or may not be dependent on risk models, but typically does involve structured analysis and interpretation of data. Overall process of risk identification, risk analysis, and risk evaluation.
Process of identifying the risks to an organization, assessing the critical functions necessary for an organization to continue business operations, defining the controls in place to reduce organization exposure and evaluating the cost for such controls. Frequently the quantification of threats to an organization and the probability of them being realized.
Examples
The notion encompasses large number of activities within banks, for example:
- Credit Risk Analysis
- Operational Risk Self-Assessment Workshops
- Material Risk Assessment Exercises
- Political Risk Analysis
- Business Impact Analysis
