Risk assessment is a step in the risk management process and describes the process of evaluating adverse effects caused by a natural phenomenon (e.g. flood). The procedure of assessing risk is based on:
- the probability that loss will occur and
- the extent of damage.
Risk assessment comprises understanding, evaluating and interpreting the perceptions of risk and societal tolerances of risk to inform decisions and actions in the flood risk management process.
The process of evaluating likelihood, threats, vulnerabilities and the theoretical effectiveness of structural and non structural protection measures, known and postulated, is not only designed for determining expected loss but also to establish the degree of acceptability related to residual risk.