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.
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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.
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References in periodicals archive ?
Which job would you take--the first job or the second job?" The HRS then assigned a value from a four-point scale varying from low level of risk tolerance (very risk averse) to risk neutral.
Understanding your level of risk tolerance is also essential.
Studies show that the level of risk tolerance of the investor fluctuates with changes in the stock market.
Therefore, let S*, the optimal amount of higher education, be a latent variable that is a function of individual-level control variables (X'), regional-level control variables (Z'), relative risk tolerance (R), and an error term ([epsilon]),
It appears to be less about personal feelings than the Financial DNA risk assessment tool, which results in seven risk profiles and 10 behavioral models, and more comprehensive than the Riskalyze questionnaire, which yields a single risk tolerance number that can be overlaid on portfolios.
This gets back to your original allocation and realigns your portfolio to your goals and risk tolerance. Simple, right?
Even though ERM has been shown to boost a firm's overall value, almost half have not developed any risk appetite or risk tolerance statements at any business level and only 61% said their program is being used to inform and influence corporate strategy.
One must always be mindful of 'risk tolerance.' In plain language, this is akin to one's rate of return that will prompt him or her to enter or exit an investment in order to prevent losses.
Although Kennedy's greatest fear was the potential for human error and accidental escalation during the standoff, he gained insight into Soviet Premier Nikita Khrushchev's risk tolerance after receiving a rambling four-part cable from the seemingly stressed Soviet leader.
"The chief argument against target-date funds is their homogeneity, as they don't account for an investor's risk tolerance, specific retirement plans or other assets."
Adopting the idea of diversification, risk tolerance and long-term planning can help prepare for periods of market volatility: