Importance Of Threat And Risk Assessment: The Key To Contingency Planning

794 Words 4 Pages
Threat and Risk Assessment:
The key to contingency planning
A Threat and Risk Assessment is a critical tool for understanding the innumerable threats to a business, determining the level of risk the business is exposed to, and recommending the appropriate level of protection. Whether or not a threat and risk assessment is conducted can make or break a business. Every business encounters issues, some more disastrous than others conducting a threat and risk assessment can keep businesses ahead of most or allow for preparation against the inevitable. Correctly conducting a threat and risk assessment along with implementing corrective measures devised from the assessment is imperative to the survival of any business.
What is a Threat and Risk
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Consensus, clarity and cohesion are commonly produced once the risk assessment is done especially in larger organizations. In addition, a business must conduct a business impact analysis. Ready.gov defines a BIA as “the process for determining the potential impacts resulting from the interruption of time sensitive or critical business processes”( “Risk Assessment”, N.D). The BIA differentiates urgent and non-urgent organization functions/activities. Critical functions are those whose disruption is regarded as unacceptable. The data collected from the BIA is used to conduct the risk analysis doing so provides an accurate depiction of possible scenarios that could hinder business activities and processes (“Business Continuity Plan”. N.D). A firm understanding of what might happen leads to an understanding of how to deal with such occasions in the event they …show more content…
Many benefits come from conducting a threat and risk assessment, especially in larger businesses where decisions are not made by a sole proprietor but instead by a group or board of individuals. Cost justification is a prime example of how a business can benefit from an assessment, added security usually encompasses additional expenditure. Since this does not generate easily identifiable income, justifying the cost is often challenging. An effective risk assessment process should educate key business managers on the most critical risks associated with conducting business and automatically and directly provide justification for security investments. Productivity is another great benefit of risk assessments. By taking steps to enact a review, create a review structure, collect data within the businesses information base and implement self-analysis features, the risk assessment can boost productivity. Improved customer and stakeholder relations along with hidden financial gains are also benefits of using a threat and risk assessment when used to devise a business continuity plan. An article posted on Disasterrecovery.org affirms that customers and stakeholders have more confidence and believe that the business is better prepared when a contingency plan is in place, additionally financial gains can be made via lower insurance premiums and possible lower supply costs (“Benefits of Business Continuity Planning”.

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