Risk assessment determines possible mishaps, their likelihood and consequences, and the tolerances for such events?TRUEFALSE

The statement regarding risk assessment is TRUE.

Risk assessment is a systematic process of evaluating potential risks that could be involved in a projected activity or undertaking. It involves identifying possible mishaps, analyzing their likelihood of occurrence, assessing the potential consequences if those mishaps occur, and determining the tolerances or thresholds for acceptable risk levels.

In essence, risk assessment helps organizations and individuals make informed decisions about how to manage risks, ensuring that they can mitigate potential negative outcomes effectively. This process is vital across various fields, including health and safety, finance, project management, and environmental studies. By understanding and documenting these factors, stakeholders can better prepare for, respond to, and manage risks.