Risk analysis has been increasingly receiving attention in making environmental decisions. For example, in its May 18, 1993 Combustion Strategy announcement, EPA required that any issuance of a new hazardous waste combustion permit be preceded by the performance of a complete (direct and indirect) risk assessment. This new requirement is a major challenge to many engineers who are involved in waste incineration activities. This Paper presents the highlights of what is required for a risk analysis from a practical engineering point of view. It provides the regulatory basis for it to provide the rationale as to why risk analysis is needed.