It is therefore important to specify the assumptions and uncertainties inherent in the risk assessment to place the risk estimates in proper perspective. The identification and evaluation of key uncertainty factors or parameters in a risk assessment is referred to as uncertainty analysis. Uncertainty analysis can be qualitative, involving a discussion about the major areas of uncertainty, the assumptions made to compensate for the uncertainty, and the likely effects on the risk results if alternative assumptions were made. It is critical that decision-makers who use risk assessment results understand the extent of the model's limitations and its results. In addition to the risk assessment, social, legal, engineering, political, and economic factors are considered in the risk management phase of watershed risk analysis.
Legal decisions consider the relevant watershed laws being implemented.
Practical technologies are often considered in the engineering evaluation. An understanding of costs and economic benefits, as well as local and regional social contexts, is critical to making informed watershed risk management decisions. This allows the watershed manager to identify the watershed stressors which need to be addressed and their relative importance in achieving watershed goals. The current risk analysis paradigm can be adapted for purposes of watershed management. It presents a conceptual model for identifying watershed resources at risk and evaluating the potential impact of watershed management options.