Which of the following is a key component of risk assessment?

Identifying potential hazards is a vital component of risk assessment because it involves recognizing elements that could cause harm or pose a threat to an organization. By pinpointing these hazards, a business can evaluate the level of risk associated with each and implement appropriate measures to mitigate them. This proactive approach enables organizations to protect their assets, ensure safety, and maintain compliance with regulatory standards.

The other options suggest processes or focuses that do not align with the fundamental purpose of risk assessment. Ignoring external factors would lead to an incomplete analysis, as outside influences can significantly affect an organization’s risk profile. Maximizing sales opportunities does not address risk management; it focuses instead on growth strategies without a consideration of potential hazards that might impact performance. Lastly, focusing solely on previous incidents limits the scope of risk assessment to historical data, which may not adequately represent current risks or future vulnerabilities. Risk assessment requires a forward-looking perspective that considers evolving threats and hazards.