Which term describes the process of comparing estimated risk against risk criteria to determine if the risk is acceptable?

Which term describes the process of comparing estimated risk against risk criteria to determine if the risk is acceptable?

• A. Identify risks
• B. Analyze risks
• C. Evaluate risks
• D. Determine acceptability by comparing to risk criteria

Answer: (C)

Evaluating risks is the process of deciding whether the level of risk is acceptable by comparing the estimated risk to predefined risk criteria. After risks are identified and analyzed (likelihood and impact are assessed), the evaluation step uses criteria such as risk appetite, tolerable levels, legal requirements, and stakeholder expectations to determine if each risk can be accepted or if it needs treatment or closer monitoring. This makes the decision point explicit: if a risk falls within acceptable limits, it can be accepted; if not, actions are prompted to reduce or transfer it.

Evaluating risks is the process of deciding whether the level of risk is acceptable by comparing the estimated risk to predefined risk criteria. After risks are identified and analyzed (likelihood and impact are assessed), the evaluation step uses criteria such as risk appetite, tolerable levels, legal requirements, and stakeholder expectations to determine if each risk can be accepted or if it needs treatment or closer monitoring. This makes the decision point explicit: if a risk falls within acceptable limits, it can be accepted; if not, actions are prompted to reduce or transfer it.