Security Risk Management

Tools of security risk management

Security Risk Management involves identifying and understanding threats to an organization's security, the community, or an individual. It also consists of the implementation of ways to address these threats. A security risk is anything that leads to loss or damage to information or assets and harms people. The security risk comes up as a result of investigating the likelihood of a threat to exploit vulnerable resources and how it negatively impacts valuable assets.

The significant elements of security risk management are assessment and mitigation. The process begins with finding out what risk there is and its impact, which automatically leads to the strategies aimed at mitigating these risks. Security Risk decisions depend on the following;

  • Threats-these are natural occurrences or artificial factors that adversely affect systems and information when combined with specific variables.

  • Vulnerabilities-are weaknesses that allow specific threats to cause adverse effects to systems and information

  • Impacts-are the results a threat would have on exploiting a weakness.

  • Risk-it is the likelihood that a specific threat can take advantage of weakness to affect systems and information negatively.

 

Jonathan Wackrow identifies and adapts to potential business threats in this rapidly changing environment by working with risk management consultants. A risk management consultant utilizes the following tools to mitigate risks in businesses;

  • Risk avoidance: this approach seeks to determine whether a risk can be avoided, for example, avoiding investing in a state subject to political instability. It could create a risk that outweighs the potential profit.

  • Risk transfer: risk management consultants advise businesses to transfer risks by involving insurance companies. It is also achievable by leasing property to external investors as opposed to ownership.

  • Risk abatement: this involves decreasing a loss by adopting measures to prevent damage. In this case, it does not eliminate the risk, but the impact on resources is minimal.

  • Risk assumption: in this approach, the company is liable for its losses since the chances of failure are minimal. Risk management consultants advise such companies to adopt risk prevention strategies.