Risk aggregation
Risk aggregation: The process of combining multiple individual risks into a single overall risk profile. It is used in risk management to identify and evaluate the potential impact of multiple risks on an organization’s objectives and assets. Examples include aggregating the risks of a cyber-attack, data loss, and natural disaster to assess the overall risk […]
Risk management
Risk management: The coordinated activities undertaken to direct and control an organization with regard to risk. It involves the identification, assessment, and prioritization of risks, followed by the application of resources to reduce, monitor, and control the likelihood or impact of unwanted events. Effective risk management helps in reducing the likelihood of a disruptive event […]
Risk analysis
Risk analysis: A component of risk management that involves the identification and assessment of risks. It involves determining the likelihood that a threat will exploit a vulnerability and the subsequent impact on an organization. It helps in prioritizing risks based on their potential impact and the likelihood of occurrence, facilitating effective decision-making about how to […]
Risk Map
Risk Map: A graphical representation of the risks that an organization faces, providing a visual depiction of their likelihood and the magnitude of their impact. It can help to prioritize risks based on their potential impact and probability of occurrence. Risk maps are often used as a tool for communicating risks within the organization, making […]
Risk appetite
Risk appetite: The amount and type of risk that an organization is willing to accept in pursuit of its objectives. It is a strategic concept that guides decision-making processes, indicating the balance between the potential benefits of innovation and the threats that change inevitably brings. By defining risk appetite, organizations can make informed choices, set […]
Risk mitigation
Risk mitigation: The process of taking actions to reduce the likelihood or impact of a risk. Mitigation strategies can range from preventive actions aimed at avoiding the risk to contingency plans prepared for dealing with the impact should the risk materialize. The goal of risk mitigation is to acceptably reduce the possibility and consequences of […]