Strategic Assessment decomposes a strategic problem into clearly defined components in which all factors and probabilities are portrayed. Objective information and subjective judgments of experts are then incorporated by various methods of problem structuring and information processing. There are countries which keep intense secrecy about their national security matters, but the process of Strategic assessment can increase the understanding of how countries may assess their future security environment. The concept is often confused with intelligence analysis
of foreign forces. There is a major difference that is strategic assessment is an analysis of interaction of two or more national security establishments both in peacetime and war. The central concept is interaction of two belligerents, not an assessment of one side alone. Strategic assessment making styles may vary from country to country and there are almost always miscalculations involved according to the nature of the national leadership that made the
In retrospect it is easy to determine errors in strategic assessment. For e.g. it will be a mistake to examine static, side-by-side comparisons of weapons without analyzing the way these weapons would actually interact in the future fight. Similarly, it will be a mistake to fail to identify friends and foes in wartime so the question of international alliances is very important. In the broadest definition, "strategic assessment" implies a forecast of peacetime and wartime competition between two nations or two alliances that includes the identification of enemy
vulnerabilities and weaknesses in comparison to the strengths and advantages of one’s own side.

The military theoretician Carl von Clausewitz has given the general character of net assessment at the level of national military interaction. One section of Clausewitz' book On War asks a simple question: How could the national leadership know how much force will be necessary to bring to bear against a potential enemy? Clausewitz replies, we must gauge the character of . . . (the enemy) government and people and do the same in regard to our own. Finally, we must evaluate the political sympathies of other states and the effect the war may have on them.
So, strategic assessment is comparative evaluation of two states which seeks to identify strengths and weaknesses on both sides in order to understand how countries may assess their future security environment.