Concept And Practical Application Of Risk Management Essay

940 Words Sep 18th, 2016 4 Pages
The whole process of business perspectives, practical business continuity and disaster recovery planning perspectives, and the IT-centric perspectives risk management needs to be comprehended to understand the concept and practical application of risk management. Creating a business continuity plan unique to your business is important to your company’s success. Every organization will handle threats and risks different with taking location, industry, organizational culture, departments, company structure, departments, work units, management approach and strategic objectives into perspective. Each step in the process of basic risk management is important. The four basic steps of risk management are threat assessment, vulnerability assessment, impact assessment, and Risk mitigation strategy development.
Threat assessment is the first step in a risk management program. The threat assessment analyzes all threats for a given location (Renfroe, Smith, & Associates, 2016). The assessment examines supporting information to evaluate the relative likelihood of occurrence of each individual threat (Renfroe, Smith, & Associates, 2016). The process of risk management is determining what risks should be addressed and the way they should be addressed. Business risk and IT-specific risk must be addressed using the same methodology with the following equation Risk = Threat + (vulnerability + Likelihood) + Impact (Snedaker, 2014). The risk has the option to be viewed as the specific…

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