The assessment of the potential impact that various exposures can have on the firm is known as:

The assessment of the potential impact that various exposures can have on a firm is referred to as risk analysis. This process involves identifying and evaluating the risks that an organization faces, which can come from various sources such as financial uncertainty, legal liabilities, strategic management errors, and accidents. Through risk analysis, businesses estimate the likelihood of these risks occurring and their possible consequences, which aids in informed decision-making and prioritization of risk management strategies.

Risk analysis is a critical step within the broader context of risk management, as it provides the foundational understanding necessary for effective risk control and mitigation strategies. By analyzing risks, companies can identify which exposures pose the most significant threats and then implement appropriate measures to manage or reduce these risks. This understanding is essential for safeguarding the organization's assets and ensuring its long-term sustainability.