Risk analysis is the process of identifying and evaluating potential risks that could negatively impact an organization or project. It involves assessing the likelihood of these risks occurring and the potential consequences they may have. This helps decision-makers understand what threats they face and prioritize their responses. The analysis typically includes both qualitative and quantitative methods, allowing for a comprehensive view of risks. Tools such as SWOT analysis and risk matrices are often used to visualize and categorize risks. By conducting risk analysis, organizations can develop strategies to mitigate or manage these risks effectively.