Process used to compare the estimated risk against given risk criteria to determine the significance of the risk.

Risk evaluation is a core component of the risk analysis process. After risk has been identified and estimated (quantified), it must be compared against predefined risk criteria or targets. This comparison determines the significance of the risk and informs decisions on whether the risk is acceptable or requires treatment. The process is fundamental to prioritizing mitigation actions and allocating resources effectively within a risk management framework.

B. Risk estimation is the process of assigning values to the probability and consequence of a risk, which occurs before the evaluation step.
C. Risk identification is the initial step of finding, listing, and characterizing potential risks, not comparing them against criteria.

1. API 580, "Risk-Based Inspection," Third Edition, February 2016, Section 3.1.69, "Risk Evaluation."

2. API 580, "Risk-Based Inspection," Third Edition, February 2016, Section 6.3, "Risk Analysis and Management," Figure 2.