risk assessment

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risk assessment

A report that shows an organization's vulnerabilities and the estimated cost of recovery in the event of damage. It also summarizes defensive measures and associated costs based on the amount of risk the organization is willing to accept (the risk tolerance).

A "risk analysis" is the process of arriving at a risk assessment, also called a "threat and risk assessment." A "threat" is a harmful act such as the deployment of a virus or illegal network penetration. A "risk" is the expectation that a threat may succeed and the potential damage that can occur. See risk management and risk mitigation.

Risk assessment

An evaluation of potential consequences to humans, wildlife, or the environment caused by a process, product, or activity; including both the likelihood and the effects of an event. Also, qualitative and quantitative evaluation of the risk posed to human health or the environment by the actual or potential presence or use of specific pollutants.
References in periodicals archive ?
Age and investment time horizon were linked to risk tolerance, the research showed, but were not dependent on each other.
The concept of cognitive risk tolerance derives from Snelbecker's (1967) early research on personality correlates of behavior and achievement.
The core results of risk tolerance from the sample are displayed in Figure 1.
Although the influence of some of the above variables on financial risk tolerance is still unresolved, the literature does seem to agree on several points.
A gender difference favoring men on risk tolerance is also fairly well established (see meta-analysis by Byrnes, Miller, & Schaefer, 1999).
Gender differences in risk tolerance have been observed in responses to survey questions and risk-tolerance instruments.
Another alternative for clients with relatively low risk tolerance is mutual funds that invest in federal government treasury bonds, whose earnings are free from state income tax, or state and local (municipal) bonds, whose earnings are free from federal income tax (and, in many states, free from state income tax if the bonds are issued by the client's state of residence and its political subdivisions).
Identifying and quantifying the risk is a crucial element in making sure that the risk inherent in the investment premise does not exceed your risk tolerance.
Use the data collected to make sure your company adheres to the risk tolerance level that has been defined.
26 about investment risk tolerance in the San Francisco Daily Journal .
Risk tolerance is one of the key concepts in economics and finance.
Knowing your risk tolerance will help you identify your investment profile and decide how to allocate your assets.