What type of evaluation does risk assessment involve?

Risk assessment primarily involves the evaluation of potential investment risks. This process focuses on identifying and analyzing the various risks associated with a particular investment or portfolio, including market risk, credit risk, liquidity risk, and operational risk, among others. The goal is to understand how these risks could impact the performance of the investment and to determine appropriate strategies to mitigate them.

This assessment is crucial for investors, as it helps them make informed decisions based on their risk tolerance and investment objectives. By evaluating potential risks before making investment decisions, investors can position themselves better to achieve their desired outcomes while minimizing unforeseen negative impacts.

The other options, while relevant to investment and finance in general, do not pertain directly to the central aspect of risk assessment. For example, assessing investment success post-trade pertains to performance measurement rather than evaluating the risks beforehand. Financial forecasting and planning focuses on predicting future financial outcomes rather than on identifying risks. Client satisfaction surveys are aimed at gauging client experience, which is unrelated to the evaluation of investment risks.