What process involves evaluating potential risks involved in a planned business activity?

The process that involves evaluating potential risks involved in a planned business activity is known as risk assessment. This activity focuses on identifying, analyzing, and evaluating the various risks that may impact a business project or operation. During risk assessment, businesses systematically review potential hazards, determining their likelihood and the potential impact they may have. This systematic approach helps businesses understand the level of risk they face, enabling them to make informed decisions and develop strategies for mitigation.

In contrast, risk management encompasses the broader process of identifying, assessing, and prioritizing risks, followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events. While risk management includes risk assessment as a critical step, it goes beyond merely evaluating risks to implement strategies for managing them.

Risk analysis typically refers to the detailed examination of identified risks to determine their potential implications and the likelihood of their occurrence. Although this is an important part of the risk evaluation procedure, it does not cover the holistic evaluation process that risk assessment embodies.

Safety evaluation is a term that generally pertains to the assessment of safety protocols and practices within an organization, focusing more on compliance with safety standards rather than assessing risks specific to a particular business activity.

Thus, risk assessment is the most precise term for the specific process of evaluating