Risk Analysis Is Essential For Any Company Regardless Of What It May Specialize

Quantitative risk analysis involves steps, calculations and tools to have a good analysis. The steps involve with this method from (wikibooks n.d) includes: assigning value to assets, Estimating potential loss per threat, Performing a threat analysis and Deriving the overall loss potential per threat. Firstly, in order to assign an accurate value to an asset, all tangible and intangible assets must be identified. For instance a company may have a server and to determine the value of the server, the important of the server to the company and the cost of losing server are factors that helps in determining the value for the server. Secondly, the potential loss per threat should be estimated. If a server is hacked, how much loss will it cost to the company? To know that, the Single Loss Expectancy (SLE) has to be calculated. SLE is the asset value (AV) times the exposure factor (EF). Thirdly, risk analysis have to be performed. In the case of a server being stolen, it has to be determine how many times in a year can it happen. To know this, the Annual Rate of Occurrence (ARO) have to be calculated. Also, the overall loss potential per threat have to be known. The overall loss that can be incur from a stolen server and the probability that a server will be stolen can be derived by calculating the Annual Lost Expectancy (ALE) which is annual rate of

Qualitative risk analysis the reason that a qualitative method is more commonly used than a quantitative method is because of the difficulty of assigning monetary values to assets, calculating the percentage of damage that could be endured and deriving the probability of frequency of a threat becoming realized.

Risk Management Analysis |

Risk is what may occur or, that which is likely to occur, as a result of a particular incident. Risk is part of everyday life and it exists in every activity undertaken by humanity. However, some risks can be avoided and are not as grave as others. To evaluate a risk, careful consideration is given to its nature and consequences. Risk is calculated relative to the damage an incident causes and the level, size, and extent of exposure to said damage. Hazard is the apparatus that causes the damage or harm, and exposure is the degree, depth, and scope of the risk as influenced by the nature of the source of danger. In other words, risk can be determined by multiplying hazard by exposure (Nemeth,

It is used as a means of input to the risk management plan processes (Heldman, 2005). It usually helps the project managers and the project team to recognize the components of a project that are at risk or certain risks that are unique to a specific area of the project than compared to a risk that is commonly found throughout the project. There also various qualitative analysis that can be used to in identifying and analyzing risk in a project. The method of qualitative risk analysis involves the assignment of a numeric value to the scales. This risk analysis is normally used for projects that are larger and that risks have a greater and more significant impact (Heldman, 2005). There are various software tools and methods that can be used, an example would be the use of Monte Carlo analysis for calculating values for projects that are large and difficult. There are various values that are assigned to the magnitude or intensity of the risk, for example, High-.80, Medimum-.50, Low-.10; these are used to rate and prioritize the risks (Heldman, 2005). A risk registry is also an essential documentation that can be used analyze the quantitative aspect related to risk and threats that are found throughout the project. The Risk Breakdown Structure is created to identify the various risks categories in the project so that they can be in the prioritized response plan (Heldman,

One may need to be careful when ranking risk or displaying certain information related to risk. Qualitative and quantitative risk approaches are necessary and the timing and exact situation or risk need management level consideration. Combining a variety of these approaches with subject matter expertise can benefit DHS in determining a way forward (Rozell, 2015). It is beneficial in understanding risk associated with critical infrastructure. This can help in determining additional measures, and this can influence risk management

Risk refers to a likelihood, probability, a chance that a loss may occur in a given organization. Most of the times, there is a high risk when there is vulnerability. In this case, vulnerability refers to a weakness that the organization has. Risk assessment refers to the process of identification of potential hazards and proper analysis of the expected losses if those hazards occur (Homeland Security, n.d.). Risk assessment as a way of profiling risk according to impact to the organization. Some organizations have business impact analysis exercises geared towards determination of potential hazards based risk assessment approaches. Organizations’ risk differ depending on the size and the type of business they are doing. The disparity in organizations’ risk call for different adaptation of risk assessment approaches. Even with the disparities of the businesses, proper risk management not only ranks the risks according to the seriousness but also identifies the best methods to control risks in an organization.

When we delve into the word 'risk ', we find that it has a multitude of meanings, and that it is nowhere near as clear and precise as the advocates of traditional risk assessment assert, for example Hansson (2002) identifies five different common uses for the word risk, and Ekberg points out a "proliferation of risk definitions" and a whole range of different understandings of risk (2007 p345).

This paper discusses three risk analysis methodologies, specifically, MSRAM, OCTAVE, and CRAMM and provides a detailed description of each and how they incorporate risk into a platform for decision makers to use in their endeavors to prevent, protect, mitigate, respond, and in recovery measures as part of the risk assessment and management processes.

Background- In its most basic sense, risk management identifies, allows assessment, and prioritizes risks that are associated and central to an individual project or organization. Risk management allows the organization to be proactive in preventing or mitigating risks, for improving certain processes within the organization, and with the hope of preventing fiscal exposure. However, in almost every organization there are risks individuals are unique and do not always perform at a high level of safety; mechanical or design failures exist, construction projects have supply or labor issues, there are uncertainties in computer or data modification, of course natural disasters, and even deliberate attacks from competitors, etc. Because this is such a common occurrence, national and even international standards have been developed in conjunction with the insurance and regulatory institutions to at least provide basic guidelines to minimize risks risk (International Organization for Standardization, 2009).

There are two main types of risk management assessments. They are qualitative and quantitative methodologies. With the qualitative methodology, a relative values are used to determine the probability and impact of a risk (Gibson, 2011). This type of information can be collected quickly. A quantitative risk assessment is used to estimate how much money would be lost should a vulnerability be exploited (Vanderberg, n.d.). With the quantitative methodology, actual dollar values are used. It can take a time to gather this type of data. Once the data is gathered, however, a math formula is used to determine the priority of risks and in turn show the results of controls (Gibson, 2011).

There are different approaches that can be taken when assessing risk. We can use quantitative methods, which deal in exact dollar amounts and figures. Quantitative methods are more concrete, but take longer to assess due to all the factors involved. This method would be more accurate at determining losses for our company which deals in information. You also have qualitative methods, which are more subjective and deal with assigning ratings. For example, you could have a risk rating system with values of

Good security management requires risk management to mitigate or reduce risk to an acceptable level within an organization. Security management’s objective is to protect the company and its assets. A proper risk analysis will identify the company’s major assets, threats that put those assets at risk, and estimate the possible damage and loss a company may endure if any of the threats were to become real. With a good risk analysis, management can determine the type of budget they want to set to mitigate threats. Risk analysis justifies the cost of the countermeasures against the threats and determines the benefit or worth of security

 analysing the risks to determine the level of risk, which is defined as the

The reader will become familiarised with the term risk and it definitions from specifically the ISO 31000 standard of risk management and also the definition of risk from the criminology crime triangle. Which one of these two definitions that are the most suitable for usage within the security industry will be discussed and evaluated. How and why consequence is important when assessing risk priorities and determining where to allocate resources will be examined and answered.