Which of the following best describes risk assessment?

The best description of risk assessment is identifying and analyzing potential risks. This process signifies a foundational component of risk management, where organizations examine potential threats, vulnerabilities, and impacts associated with their assets. Identifying involves recognizing the various risks the organization may face, while analyzing entails understanding the likelihood and potential consequences of these risks.

Conducting a thorough risk assessment enables organizations to prioritize their resources and formulate appropriate strategies to mitigate or accept risks, thereby enhancing their overall security posture. This process is essential for informed decision-making and effective security planning.

The other choices, while they may touch on aspects related to security and compliance, do not encapsulate the full scope of what risk assessment entails. For instance, simply reviewing past incidents may provide insights but does not constitute a proactive approach to risk management, which requires a comprehensive view of potential risks, including those that have not yet occurred. Developing security measures and monitoring compliance are parts of the broader risk management process but do not specifically define risk assessment itself.