Risk Mitigation Definition and Contribution To Society

Letting cyber attacks affect your company can bring catastrophic results. Let’s find out in this article the risk mitigation definition and how it can save your company from bankruptcy. 

Risks That Can Put You Out Of Business

No business is safe against cyber attacks. Hackers attack all businesses regardless of their size. They will do everything to get the data your business holds. Furthermore, businesses face different types of risks, namely:

  • Strategic risk
  • Compliance risk
  • Operational risk
  • Financial risk
  • Reputational risk

These types of risks can cause serious losses or profits. However, that’s not it. These risks can cause bankruptcy to your business.

With those in mind, an organization must be aware of the risks listed above. Ignoring those and not mitigating them spell disaster for your company. Risk mitigation prevents such bad things from happening. Let’s find out the risk mitigation definition and its importance.

Risk Mitigation Definition

This strategy prepares and lessens the effects of cyber threats. Risk mitigation is somehow similar to risk reduction. Moreover, risk mitigation goals to reduce the effects of a cyber-attack or disaster. Cyber attacks aren’t the only problem of businesses in protecting data. Furthermore, weather events can cause physical or virtual damage to data.

In other words, it deals with the results of a disaster. Some disasters are inevitable. One example is weather disturbances or mishandling of data. A mitigation plan focuses on what businesses would do after a disaster. 

Moreover, a proper plan involves weighing the impact of each risk. Afterward, a business will plan around that impact. Furthermore, this plan helps businesses reduce the long term effects of a disaster.

Prioritization 

This is one aspect of mitigation. It means accepting a small amount of risk in one part of an organization to protect the other parts. One thing is for sure. An organization faces threats every day. Furthermore, a business cannot protect all of its areas. Prioritization helps businesses protect critical parts of their organization that are essential for operation.

Of course, an organization should be prepared in avoiding all threats. But, we should always prepare for the worst. Mitigation involves acknowledging that threats will occur and having systems in place to confront that.

What Should Be In The Plan

As we have mentioned earlier, not only cyber threats impose danger to a business. A good plan must also include natural risks such as typhoons and geographical problems. Moreover, an organization must also consider their employees and their needs when planning.

Here are the five steps in creating a risk mitigation plan:

Identify the risk

Identify potential events and sequences where risk is presented. Furthermore, risk can be found in existing weaknesses or known threats. 

Perform a risk assessment

Weigh the potential impact of risk and the chances of it happening.

Prioritize 

Afterward, rank the potential risks from most to least severe. Areas with the lowest level of acceptable risk should be the top priority.

Track risks.

If the risk can be followed, keep track of it and the threat it poses. For example, track severe weather events if your organization is in a known natural disaster area. Or monitor the frequency of cyberattacks in your industry.

Implement and monitor progress

Moreover, it is important to test the plan. That is to ensure that the plan is up to date. If risk priorities change, make sure your plans reflect that.

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