What is Risk Management in Information Security?

Information security risk management is the ongoing procedure of discovering, correcting, and avoiding security issues. Risk assessment is an elemental part of an organization's risk management procedure, designed to support appropriate security levels for its data systems and data.

Risk is basically anything that threatens or limits the ability of an organization to implement its mission. Risk Management should be a group of continuous and developing processes that are used throughout an organization’s approaches and should methodically address some risks surrounding previous, present and future activities.

The information security risks facing an organization will vary with the feature of the processing implemented by the organization and the sensitivity of the data processed. An understanding of risk and the software of risk assessment methodology is important to being able to efficiently and effectively make a secure computing environment.

It is the procedure of identifying vulnerabilities and threats to the data resources used by an organization in implementing business objectives, and determining what countermeasures, if some take in decreasing risk to an acceptable level, depends on the value of the data resource to the organization. Successful risk management needs the difficulty of all levels of employers of an organization.

A successful risk management program supports an organization consider the complete range of risks it faces. Risk management also determines the relationship between risks and the cascading impact they can have on an organization's strategic objectives.

This holistic method to handling risk is defined as enterprise risk management because of its emphasis on anticipating and understanding risk across an organization. Moreover a focus on inside and outside threats, enterprise risk management (ERM) emphasizes the importance of handling positive risk.

Positive risks are opportunities that can enhance business value or, conversely, damage an organization if not taken. Indeed, the objective of risk management program is not to remove all risk but to preserve and add to enterprise value by creating smart risk decisions.

There are three types of risk management which are as follows −

  • Project risks − Project risks concern multiple forms of budgetary, schedule, personnel, resource, and user-associated problems. A basic project risk is schedule slippage. Because the software is intangible, it is complex to monitor and control a software project. It is complex to control something which cannot be recognized. For some manufacturing program, including the manufacturing of cars, the plan executive can identify the product taking shape.

  • Technical risks − Technical risks concern potential issues, implementation, interfacing, testing, and maintenance problems. It also includes an ambiguous specification, incomplete specification, changing specification, technical uncertainty, and technical obsolescence. Some technical risks appear because of the development team's insufficient knowledge about the project.

  • Business risks − In business risks, it involves risks of building an excellent product that no one required, losing budgetary or personnel commitments, etc.

Updated on: 03-Mar-2022

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