Textbook Problem

What is risk management? Why is the identification of risks and vulnerabilities to assets so important in risk management?

Explanation of Solution

Risk management:

• The process of identifying risk, evaluating its comparative magnitude, and taking some steps to reduce it to the acceptable level is referred as risk management.
• The probability of defining something that will go wrong as a source of any event or due to any series of sequences is referred as risk.
• A risk management plan contains assessment, analysis, and handling the risk.
• It takes the step to ensure the confidentiality, integrity and availability of all the components in the organization’s information system.
• It has three major undertakings:
  • Risk identification
  • Risk assessment
  • Risk control

Identifying the risk:

• Identification of risk is important, because an individual should know what risks are available in the system and should be aware of the ways to control them.
• Information should be analyzed and the system which stores, uses and transmit information should be checked repeatedly.
• These steps should be taken to protect it from risk and to make sure up to which vulnerabilities they are susceptible.
• Once the process has been identified, analyze what are the measures that have been already taken to protect the system.
• Moving the asset from place does not really mean that the asset is kept safer.
• Organizations will start implementing the control mechanisms, but they unfortunately neglect the periodic review, maintenance, revision which are necessary to run the system without risk.
• Thus, the training programs, education and technologies which help in protecting the information should be maintained carefully and regularly.