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The APA Thesaurus offers the following definition:

Analysis, evaluation or prediction of disordered or abnormal behavior, symptoms, or other aspects of psychological functioning, includes assessing the appropriateness of a particular treatment and the degree or likelihood of clinical improvement

It is a complex skill requiring good decision making and treatment planning skills to match the client to the treatment.

Decisions usually follow an intake interview and extensive psychological assessment with the possible consideration of a diagnosis, possibly in the light of a psychiatric assessment, and weighing treatment risk and prognosis

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