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Management & Leadership vocabulary · Decision Making

Risk assessment

Meaning in management & leadership, with examples

nounCommon term

In management & leadership, risk assessment means: The process of identifying what could go wrong in a plan or activity, judging how likely and how serious each risk is, and deciding how to reduce it.

In Turkish: risk değerlendirmesi, risk analizi

How it is used

Used in decision-making, projects, finance and health and safety. You carry out, do or update a risk assessment. Risks are often rated by likelihood and impact, sometimes in a risk matrix.

Example sentences

  1. We need a proper risk assessment before we move production to the new site.

  2. The risk assessment rated a supplier failure as unlikely but high impact.

Common collocations

  • carry out a risk assessment
  • risk assessment process
  • update the risk assessment
  • formal risk assessment
  • decision-makingThe process of choosing between different options, including collecting information, weighing risks and benefits, and agreeing who makes the final choice.
  • contingency planA plan that describes what an organisation will do if something goes wrong or an unexpected event happens, such as a supplier failing or a key person leaving.
  • trade-offA situation where you accept less of one thing to get more of another, such as lower quality for faster delivery; also the balance you choose between the two.
  • data-drivenBased on the analysis of facts and figures rather than on opinion, habit or intuition; used about decisions, company cultures and organisations.
  • SWOT analysisA planning tool that lists an organisation's internal strengths and weaknesses and the external opportunities and threats it faces, used before making strategic choices.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Decision Making

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