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Understand and Apply Risk Management Concepts

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Risk management is a detailed process of identifying factors that could damage or disclose assets, evaluating those factors in light of asset value and countermeasure cost, and implementing cost-effective solutions for mitigating or reducing risk. The overall process of risk management is used to develop and implement information security strategies that support the mission of the organization. The results of performing risk management for the first time is the skeleton of a security policy. Subsequent risk management events are used to improve and sustain an organization's security infrastructure over time as internal and external conditions change.

The primary goal of risk management is to reduce risk to an acceptable level. What that level actually is depends on the organization, the value of its assets, the size of its budget, and many other factors. One organization might consider something to be an acceptable risk, whereas another organization might consider the very same thing to be an unreasonably high level of risk. It is impossible to design and deploy a totally risk-free environment; however, significant risk reduction is possible, often with modest effort.

Risks to an IT infrastructure are not all computer based. In fact, many risks come from non-IT sources. It is important to consider all possible risks when performing risk evaluation, including accidents, natural disasters, financial threats, civil unrest, pandemics, physical threats, technical exploitations, and social engineering attacks. Failing to properly evaluate and respond to all forms of risk will leave a company vulnerable.

Risk management is composed of two primary elements: risk assessment and risk response.

Risk assessment or risk analysis is the examination of an environment for risks, evaluating each threat event as to its likelihood of occurring and the severity of the damage it would cause if it did occur, and assessing the cost of various countermeasures for each risk. This results in a sorted criticality prioritization of risks. From there, risk response takes over.

Risk response involves evaluating countermeasures, safeguards, and security controls using a cost/benefit analysis; adjusting findings based on other conditions, concerns, priorities, and resources; and providing a proposal of response options in a report to senior management. Based on management decisions and guidance, the selected responses can be implemented into the IT infrastructure and integrated into the security policy documentation.

A concept related to risk management is risk awareness. Risk awareness is the effort to increase the knowledge of risks within an organization. This includes understanding the value of assets, inventorying the existing threats that can harm those assets, and the responses selected and implemented to address the identified risk. Risk awareness helps to inform an organization about the importance of abiding by security policies and the consequences of security failures.

(ISC)2 CISSP Certified Information Systems Security Professional Official Study Guide

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