The moment you connect your computer to the Internet, it’s exposed to risks. A risk assessment methodology helps in managing risks.
Every company must work hard in protecting their data. These data include sensitive information such as customer data and employee information. Additionally, every company works hard to protect proprietary information and information assets.
Why Do You Need A Risk Assessment Methodology
Security is about managing risks. Your computer is exposed to all kinds of threats the moment you connect it to the Internet. Moreover, it’s somehow impossible to name a “safe computer”. The most secure computer has never been turned on. It is locked up and buried 200,000 meters under the Atlantic Ocean’s seabed.
But, that’s not the case in today’s world. We have become heavily dependent on IT and communication. Furthermore, we use technology in processing, storing, and transmitting the information. Moreover, we use technology to deliver services to people.
Technology made our lives easier. However, an effective risk assessment methodology is required to keep the data secured. Furthermore, it helps you understand which security risks and assets you face.
Also, this process helps us protect assets and manage the budget in protecting them. Otherwise, data breaches can cause financial and reputational damage.
What Is Risk Assessment?
This is an intensive process of identifying and analyzing potential threats. Furthermore, risk assessment helps organizations see where those risks lie. Moreover, this aims at achieving optimal security at a reasonable cost. Additionally, an assessor also finds relevant threats and vulnerabilities. This process looks at all aspects, these include:
- Physical
- Environmental
- Administrative
- Management
- Technical
Organizations conduct risk assessments in many areas of their business. That starts with security and finance. Moreover, this exclusively deals with digital assets and data.
Types Of Risk Assessment Methodology
There are two types of risk assessment. These are (1) qualitative and (2) quantitative. Let’s take a short look at those two.
Quantitative
From the words themselves, this focuses on numbers. It measures risk using monetary amounts. This process starts by compiling two lists. These are:
- A list of possible risks and most important digital assets
- Valuable information such as IT infrastructure and other key assets
Furthermore, this process involves asking questions such as:
- Which asset would be affected by the risk at the top of your list?
- What is the number of financial loss?
- A breach exposes how many records?
- how will this risk impact our bottom line?
The answers to these questions are on numbers. It allows boards to compare the costs of security controls to the data those controls protect.
Qualitative
This deals less with numbers; this deals as scenario-based. This process primarily answers the question “what if?”. Moreover, this process tends to be more subjective. This also involves talking to different departments or unit members. Afterward, the assessor asks them how they would be impacted in the event of a breach.
This assessor’s interviews help him/her see which systems and platforms are mission-critical. This process might not be as precise as quantitative but it teaches us a lesson. An attack doesn’t only involve financial damages. It can throw operations into chaos or even bankruptcy.
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