Risk is the possibility of something adverse happening. Risk management is the process of assessing risk, taking steps to reduce risk to an acceptable level and maintaining that level of risk. Risk analysis should be performed to determine what is at risk when a disaster occurs. This should include such elements of a system as:
ÃÂ·Loss of data
ÃÂ·Loss of software and hardware
ÃÂ·Loss of personnel
Benefits of Risk Analysis
Here are some of the benefits that a business can gain by performing a risk analysis: -
Identification and prioritization of critical activities and functions
Risk analysis plays a vital role in identifying the activities and functions without which an organization would be unable to sustain its operations. The organizations can put all its effort and resources towards the successful continuation of these activities and functions in an event of a disaster.
Ease of data comprehension
The output of risk analysis allows decision makers to understand risks well.
This is because the data related to the impact and loss caused by risks is presented in simple figures. Also the output of risk analysis does not involve complex mathematical calculations or complex graphs.
Assessment of the security awareness among employees
Risk analysis provides a way for employees to learn about the risks that their organization can face. This helps employees avoid errors on their part and report signs of early danger. The employees may also help identify new risks that have gone unidentified by management.
Assessment of the preparedness of an organization with respect to the risks
In risk analysis, you need to identify the risks that are likely to harm an organization and then check the level of preparedness of the organization the damage of the identified risks. Therefore by performing risk analysis a business can asses whether...