A risk assessment allows you to objectively categorize and prioritize risks. It's a crucial component of your risk management strategy and involves analyzing each risk to determine the probability of that risk causing a loss. Then, you analyze the potential severity of that loss. Without this assessment, time and resources cannot be properly allocated to manage risks. So, how is a risk assessment accomplished? Here, we'll discuss the answer to that. We'll go over two risk assessment methods: risk register and risk matrix.