What aspect of risk assessment involves examining the potential effects on stakeholders?

Impact assessment is focused on evaluating the potential consequences of risks on various stakeholders involved in or affected by a project or decision. This process involves analyzing how different risks can affect stakeholders both positively and negatively, considering factors such as economic, social, and environmental impacts. By systematically considering these effects, organizations can better understand the broader implications of their risk management strategies and make more informed decisions that align with stakeholder interests.

This assessment is crucial because it helps in prioritizing risks based on their potential impact, ensuring that stakeholder concerns are addressed. This holistic view promotes transparency and stakeholder engagement, fostering trust and collaboration. In the context of risk assessment, impact assessment allows for a deeper understanding of how risks can influence stakeholder relationships and organizational reputation, which is essential for effective risk management.

In contrast, other options focus on different components of risk assessment. Risk identification pertains primarily to recognizing potential risks, risk analysis involves studying the nature and likelihood of identified risks, and stakeholder assessment would generally refer to identifying who the stakeholders are rather than assessing the impact on them. Each plays a significant role, but impact assessment particularly emphasizes the effects on stakeholders, making it the most relevant choice in this context.