Risk analysis is the process of assessing the likelihood of an adverse event occurring within the corporate, government, or environmental sector.

Risk analysis is the study of the underlying uncertainty of a given course of action and refers to the uncertainty of forecasted cash flow streams, the variance of portfolio or stock returns, the probability of a project's success or failure, and possible future economic states.

Risk is a probabilistic measure and so can never tell you for sure what your precise risk exposure is at a given time, only what the distribution of possible losses are likely to be if and when they occur.

There are also no standard methods for calculating and analyzing risk.