Which of the following best defines risk assessment?

The definition of risk assessment as the process of identifying and analyzing potential hazards is correct because it encompasses the core objective of risk management. In risk assessment, individuals or organizations systematically evaluate risks that could adversely affect their operations or objectives. This includes identifying potential hazards—whether they are financial, operational, safety-related, or other types of risks—and assessing their likelihood and impact.

This definition goes beyond mere observation; it involves a comprehensive analysis of how these hazards can affect people, property, and processes. By clearly understanding potential risks, organizations can implement effective strategies to mitigate or eliminate them, ultimately leading to a safer and more secure operating environment. This proactive approach is fundamental to managing safety and risk effectively in any organization.

The other options do not pertain to the concept of risk assessment. Budget planning, marketing strategies, and project management techniques are all important business processes but do not focus specifically on identifying and analyzing hazards, which is the essence of risk assessment.