Which of the following is a common method used to assess risk?

The assessment of risk often requires a comprehensive understanding of various factors that could impact an organization. One prevalent method for this is the combination of surveys, interviews, document reviews, and risk scoring. This approach allows for a qualitative and quantitative assessment of potential risks.

Surveys and interviews facilitate the collection of firsthand insights from key stakeholders, helping to identify concerns and perceptions regarding risks. Document reviews enable the evaluation of existing records, policies, procedures, and past incidents that can provide context on historical risk exposures. Risk scoring combines these insights into a structured format, which allows organizations to prioritize risks based on their severity and likelihood of occurrence. This multifaceted approach ensures a holistic view of potential risks, making it a preferred method in risk assessment practices.

While regular financial audits, employee performance evaluations, and market research reports provide valuable information, they primarily focus on specific areas such as financial health, employee productivity, or market conditions. They do not provide the comprehensive risk analysis that is inherent in using the combination of surveys, interviews, document reviews, and risk scoring. This makes the selected answer the most suitable method for assessing risk in various contexts.