Risk evaluation is the process of assessing potential risks associated with a specific situation or decision. It involves identifying hazards, analyzing their potential impact, and determining the likelihood of their occurrence. This helps organizations and individuals make informed choices by understanding the possible consequences of their actions. During risk evaluation, various factors are considered, such as financial implications, health and safety concerns, and regulatory requirements. By systematically evaluating these risks, stakeholders can prioritize them and develop strategies to mitigate or manage them effectively, ensuring better outcomes and minimizing negative impacts.