What is the term used for the assessment of risks based on their likelihood and impact?

The term used for the assessment of risks based on their likelihood and impact is risk analysis. This process involves identifying potential risks that could affect a project or organization, then evaluating both the probability of those risks occurring and the potential consequences if they do occur.

Through this analysis, business analysts can prioritize risks based on their significance, allowing organizations to focus their attention and resources on the most critical factors. Risk analysis is an essential component in risk management, as it lays the groundwork for developing strategies to mitigate or manage identified risks effectively.

In contrast, risk evaluation generally refers to the overall process of comparing the levels of risk against predefined criteria to determine whether they are acceptable. Risk appraisal is more focused on broader aspects of assessing risk, and risk management encompasses the overall process of identifying, assessing, and responding to risks, which includes but is not limited to risk analysis.