Definition of Risk Analysis

Risk analysis is the process of identifying and analyzing possible threats or issues that may arise in the future of the project. Risk analysis is done at the corporate, governmental, or environmental level. This analysis helps management to find out and estimate the risk if that could arise in the future.

Risk analysis process includes analyzing the risk arise due to natural processes i.e., earthquakes, storms or floods, or human-based events i.e., weak security systems or wrong selection of the project.

Companies used risk analysis to:

• Analyze and reduce the impact of the harmful events
• Evaluation of risk taken vs the benefits offered by the successful completion of the project
• Planning of backup resources to be used in case of a harmful event
• Make necessary changes in the project or the company to avoid harmful events.