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Risk assessment consists of an objective evaluation of risk in
which assumptions and uncertainties are clearly considered and
presented. Part of the difficulty in risk management is that
measurement of both of the quantities in which risk assessment
is concerned - potential loss and probability of occurrence -
can be very difficult to measure. The chance of error in
measuring these two concepts is large. Risk with a large
potential loss and a low probability of occurring is often
treated differently from one with a low potential loss and a
high likelihood of occurring. In theory, both are of nearly
equal priority, but in practice it can be very difficult to
manage when faced with the scarcity of resources, especially
time, in which to conduct the risk management process. Expressed
mathematically,  R_i=L_i p(L_i)\,\! R_{total}=\sum_i L_i
p(L_i)\,\! Risk assessment from a financial point of