Risk assessment is the process of identifying and evaluating potential risks that could negatively impact an organization or project. It involves analyzing various factors, such as financial loss, safety hazards, and reputational damage, to understand how likely these risks are to occur and their potential consequences. By doing this, businesses can prioritize which risks need immediate attention and develop strategies to mitigate them. Once risks are identified, organizations can implement measures to reduce their impact. This may include creating safety protocols, investing in insurance, or developing contingency plans. Effective risk assessment helps ensure that companies are prepared for unexpected challenges, ultimately leading to better decision-making and increased resilience.