The definition and common methods of risk assessment are as follows:

I. Risk Assessment:

Risk Assessment (Risk Assessment) refers to the quantitative assessment of the likelihood of impacts and losses caused by a risky event to people's lives, lives, property and other aspects before or after the event (but not yet over). That is, risk assessment is the quantitative measurement of the possible degree of impact or loss caused by an event or thing.

Second, commonly used methods:

1, risk factor analysis method

The general idea is: investigation of the risk source → identification of the risk of transforming the conditions → to determine whether the conditions for transformation → to estimate the consequences of the risk of occurrence → risk assessment.

2, fuzzy comprehensive evaluation method

3, internal control evaluation method

Internal control evaluation method refers to a method of determining the audit risk through the evaluation of the internal control structure of the audited unit.

4, analytical review method

Analytical review method is a method in which the CPA analyzes the audited entity's key ratios or trends, including investigating unusual variations, and the differences between these key ratios or trends and expected amounts and related information, in order to speculate on whether there is a possibility of material misstatement or omission in the accounting statements.

5, qualitative risk evaluation method

Qualitative risk evaluation method refers to those through observation, investigation and analysis, and with the help of the CPA's experience, professional standards and judgment can be qualitative assessment of audit risk.

6, risk rate risk evaluation method

Risk rate risk evaluation method is one of the quantitative risk evaluation method.

Third, the task:

1, to determine the main tasks of risk assessment;

2, identification of various risks faced by the object of assessment;

3, assessment of the probability of the risk and possible negative impact;

4, to determine the organization's ability to withstand the risk;

5, to determine the priority level of risk abatement and control;

6. Recommend risk mitigation countermeasures.