Risk Assessment
Risk assessment is an important process for the identification of significant risks and to ensure cost-effective controls can be put in place to address the identified risks.
There are many methodologies available for assessing risks. An organization should use the methodology that best fits its requirements. This methodology should be able to achieve the goals and objectives of the organization in the identification of relevant risks. A common risk assessment methodology is COBIT 5.
Phases of Risk Assessment
Generally, a risk assessment process has the following three phases:
- Risk identification: In this phase, significant business risks are identified. Risk identification is generally conducted by the use of risk scenarios. A risk scenario is a visualization of a possible event that could have some adverse impact on the business objectives. Organizations use risk scenarios to imagine what could go wrong or what could create barriers to achieving the...
