Risk assessments

Identifying business risk starts with understanding how internal and external factors could affect your organization’s ability to achieve its objectives. A risk assessment helps organizations evaluate strategic, operational, financial, regulatory and technology‑related risks through the lens of business impact and likelihood. RSM helps organizations identify where targeted risk assessments are most valuable, focusing on the risk domains most likely to affect performance, compliance and resilience.

Risk assessment methodologies are structured approaches used to identify, analyze and prioritize risks. They typically evaluate risk based on factors such as likelihood, potential impact and existing controls. Depending on the organization, methodologies may be applied at the enterprise level or focused on specific risk areas, such as cybersecurity, third‑party risk, regulatory compliance or enterprise resource planning (ERP) implementations. RSM applies flexible, scalable methodologies that align risk evaluation with business objectives and governance expectations.

A business risk assessment generally involves identifying relevant risks, assessing their potential effects on the organization and prioritizing them to support informed decision making. Rather than treating risk as a checklist exercise, RSM evaluates risk through the lens of its effect on business performance and resilience. This approach helps leaders anticipate issues before they become incidents and focus resources on the areas that matter most.

How often a risk assessment should be performed depends on factors such as regulatory requirements, organizational change and the organization’s risk profile. Many organizations conduct enterprise or targeted risk assessments annually, while others reassess risk more frequently when significant changes occur—such as new regulations, technology implementations, mergers or shifts in business strategy. Regular risk assessments help ensure risk management efforts remain aligned with evolving business conditions and governance needs.