What is a critical component of risk evaluation?

Comparing risks with risk tolerance levels is fundamental in risk evaluation because it establishes whether the identified risks are acceptable within the context of the organization's objectives and capacity to manage those risks. This process involves assessing the potential impact of risks against the thresholds that the organization is willing to accept. By understanding the risk tolerance, organizations can prioritize which risks require more immediate attention and which ones can be monitored over time.

Establishing a clear alignment between identified risks and the organization’s risk tolerance informs decision-making processes and resource allocation. This ensures that the organization maintains a balance between pursuing opportunities and mitigating potential adverse effects.

The other choices involve important aspects of risk management, but they do not specifically address the evaluative component. Implementing risk control measures is a subsequent step that follows evaluation; calculating the total costs of risks could be relevant for financial assessment but does not directly relate to the evaluation phase; and assigning teams to manage risks is an operational aspect rather than an evaluative one.