Final answer:
Risk evaluation in risk management is the process of identifying and analyzing potential organizational risks, determining the impact and likelihood of those risks, and assessing them to formulate appropriate management strategies.
Step-by-step explanation:
In risk management, risk evaluation involves identifying and analyzing risks. This process encompasses the determination of potential risks that an organization might face, as well as the evaluation of the impact these risks could have and the likelihood of their occurrence. Once identified, these risks are then assessed to determine their potential to affect the organization's objectives. Risk evaluation is a critical step in the formulation of strategies to handle risks, which could include risk transfer, avoidance, mitigation, or acceptance.
Risk evaluation does not involve transferring risks to another party, accepting all risks without evaluation, or avoiding all risks at any cost, as stated in options b, c, and d, respectively. These actions are separate strategies that might be chosen after risks have been evaluated and understood.