What Are The Major Principles Of Risk Analysis?

1387 Words Mar 16th, 2016 6 Pages
1) What are the major principles of risk analysis? List the common steps in developing a risk analysis strategy.

Risk analysis is the methodical study of uncertainties and risks we encounter in business, engineering, public policy, amongst other areas. Thus, risk analysts seek to identify the risks faced by an institution or business unit, understand the process, they arise, and estimate the impact regarding financial or else of adverse outcomes. Risk analysis helps identify and manage potential problems that could undermine important business leads or projects.
Common steps in developing a risk analysis strategy are:
Assessment and Evaluation which is to correctly assess and evaluate the existing information technology systems within an organization (Fritsch et al, 2015). Usually, those who conduct the studies tend to focus on external vulnerabilities and threats. However losses of information come from inside. The assessment must include an evaluation of the organizational, managerial, and administrative procedures directly relevant to IT systems.
Threats: This is to identify the threats facing an organization. In numerous cases, organization suffers from main individuals intentionally stealing information or corrupting files (Fritsch et al, 2015). Information security breaches from within, and there is almost no detection of an incident that has occurred. Thus, information is accessed, altered, stolen, or damaged without the organizational victim’s knowledge by…
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