Risk assessment is best described by:

Management selects whether to avoid, accept, reduce, or share risk$-$developing a set of actions to alis the entity's risk tolerances and risk appetite.

The entirety of enterprise risk management is monitored and modifications made as necessary.

The likelihood and impact of risks are analyzed, as a basis for determining how they should be manag

Internal and external events affecting achievement of an entity's objectives must be identified, disting between risks and opportunities.