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Risk Assessment is a systematic process used in business to evaluate potential risks and their impact on accounting principles, external audits, and overall organizational success. It involves identifying, analyzing, and prioritizing risks, as well as determining appropriate strategies to mitigate or manage them. Risk assessment helps organizations make informed decisions, ensure compliance with regulations, and protect their assets, reputation, and financial stability. By evaluating potential risks, businesses can proactively address issues before they become major problems, thereby minimizing negative impacts on accounting practices, external audits, and overall operations.