What should organizations assess regarding potential risks?

Organizations need to assess potential risks to understand the uncertainty surrounding an event or decision and how that might diverge from expected outcomes. This involves examining the possibility that actual results could significantly differ from the anticipated results, whether positively or negatively. By identifying potential deviations from what was predicted, organizations can better prepare for, mitigate, or capitalize on those uncertainties.

Assessing the likelihood of variation from expectations promotes proactive risk management strategies, allowing organizations to implement contingency plans, allocate appropriate resources, and reduce the impact of negative outcomes. This critical evaluation also helps in making informed decisions that align with the overall strategic goals of the organization.

While the other options touch on related aspects of risk assessment, they do not encapsulate the comprehensive understanding of risk variability. For instance, focusing solely on positive outcomes or financial implications would provide a limited view, disregarding the full range of potential risks. Similarly, the ability to predict risks accurately is important but does not encompass the necessity of assessing the potential deviation from established plans or expectations.