The CBCI 7.0 course explains that risk assessments fundamentally rely on evaluating the likelihood of risk occurrence and the consequences if they materialize. This probabilistic approach enables prioritization and treatment planning. Although risk assessments inform BIAs and regulatory compliance, their primary purpose is to analyze potential risks in terms of impact and probability to guide effective continuity strategies. Currency (timeliness) is important but secondary to the quality of likelihood and consequence evaluations, which form the basis of all risk decisions.