What is the primary purpose of a Risk Assessment?

The primary purpose of a Risk Assessment is to evaluate potential risks and their impacts. This process involves systematically identifying and analyzing the risks that could jeopardize the achievement of an organization's objectives. By assessing these risks, organizations can prioritize their responses, develop appropriate mitigation strategies, and make informed decisions on resource allocation.

This evaluation helps organizations understand the likelihood of risks occurring and the potential consequences, ensuring they are better prepared to manage risk effectively. In this context, a detailed risk assessment can inform stakeholders and contribute to comprehensive risk management practices, making it an essential component of any risk and compliance framework.

The other options, while related to organizational functions, do not directly capture the essence of what a Risk Assessment aims to achieve. Identifying strengths in current strategies pertains more to strategic planning rather than risk evaluation. Establishing an organization's mission is a foundational component of overall governance and direction, rather than a focus of risk assessment. Outlining employee roles and responsibilities relates to organizational structure and human resource management, which is separate from the risk assessment's core function.