Risk assessment helps organizations identify, reduce and manage risks to prevent their re-occurrence. To do this, they need to spend a large amount of their IT budget on technologies and processes to find and assess those risks, determine their impact and spend considerable effort to fix them.
Additionally, the increased reliance on third-party vendors to provide risk ratings, vulnerability scans and internet surface scans produces a significant amount of fear, uncertainty and doubt about the organization’s security posture. Trying to assess actual risks against all of that noise requires a new way of thinking about risk, how to address those risks and how to engage in proactive risk management going forward.
What is a Risk Assessment?
C-suite executives need to answer a set of questions about how much to spend on removing, preventing and reducing risks and how to do this intelligently. Note that risk is usually defined as a function of the probability of a (negative) event times the magnitude (cost) of its occurrence. Ask:
How can risk appetite be adjusted, given the increasing number of threats?
How should we allocate our energies and resources to address these threats?
What should we spend our limited IT risk or cybersecurity budget on?
What are the cost/benefit trade-offs of our security spending?
Where will we get the biggest risk reduction value for the dollars spent?
Quantitative Risk Assessment Opens Doors for Security
Cyber risk quantification provides a data-based means to better decision-making. Risk quantification, a proven approach used in managing credit risk, market risk and operational risk, is now being applied to IT and cybersecurity risk. It provides decision-makers with the abil ..
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