Risk assessment and analysis is a crucial component of risk management
Here's a detailed description of risk assessment and analysis:
Security management begins with identifying and assessing potential risks and vulnerabilities that could compromise the confidentiality, integrity, and availability of sensitive information and critical systems. This involves conducting risk assessments, vulnerability scans, and penetration tests to evaluate the organization's security posture and prioritize mitigation efforts.
Risk analysis involves analyzing the identified risks to determine their significance and prioritize them for mitigation.
This includes assessing the organization's risk appetite and tolerance levels to determine acceptable levels of risk exposure. Risks that exceed the organization's risk tolerance are prioritized for further analysis and mitigation efforts.
Risk Identification
Once assets and threats are identified, the next step is to assess the likelihood and potential impact of these threats occurring. Risks are identified by analyzing scenarios in which threats exploit vulnerabilities to cause harm or losses to the organization. This may involve conducting brainstorming sessions, workshops, surveys, or using risk assessment tools to gather input from stakeholders across different departments and levels of the organization.
Risk Assessment
Risks are assessed based on their likelihood of occurrence and the magnitude of their potential impact. Likelihood is evaluated based on historical data, industry trends, expert judgment, and other factors, while impact is assessed in terms of financial loss, reputation damage, regulatory penalties, operational disruptions, and other consequences. Risks are typically categorized as high, medium, or low based on their combined likelihood and impact scores.