What is risk assessment decision?

Risk assessment is a process of understanding types of bad things that could occur, likely-hood of those bad things to occur and gravity of the effects. Risk assessment decision helps to lower risk as much as possible. Sometimes the risk will be acceptable and in other circumstances risk must change to accept. To reduce risk, action must be taken to manage it. These actions taken to reduce the impact must provide more benefit than it costs. They must be acceptable by the stakeholders.