Risk Management Processes and Concepts
Risk is the probability that an event will happen – risk can also bring profit. For example, if you place a bet in roulette at a casino, then you could win money. It is, however, more likely that risk will result in financial loss. Companies will adopt a risk management strategy to reduce the risk they are exposed to; however, they may not be able to eliminate risk. In IT, new technology comes out every day and poses new risks to businesses, and therefore risk management is ever-evolving. The main components of risk management are assets, risks, threats, and vulnerabilities. Let's look at each of these, starting with assets:
- Asset: The first stage in risk management is the identification and classification of the asset. If the asset is a top-secret document, you will handle and store it differently than an asset that is unclassified and available for free on the internet.
For example, if you had 1 kg of trash and you placed...
