Risk management is the practice of proactively evaluating where your organization is vulnerable to threats, then assessing and mitigating those threats.
Risk management incorporates various policies and processes that identify, assess and control a wide variety of potential risks to an organization, including financial uncertainty, legal liabilities, strategic management errors, accidents, natural disasters and cyberattacks. Ultimately, risk management lets organizations shift from a wait-and-see approach to one that’s proactive and preventative.
With the proliferation of sophisticated and stealthy malware, as well as a dearth of stringent and financially punitive compliance regulations such as the General Data Protection Regulation (GDPR), risk management tools and strategies have become a top priority for enterprises. Not surprisingly, organizations are increasingly devising comprehensive risk management plans that show their processes for identifying and controlling threats around the entirety of their digital assets, which include classified, proprietary or otherwise sensitive corporate data, intellectual property and personally identifiable customer information.
The following article examines different types of risk, why understanding your business risk is important, and the various risk response and overall risk reduction techniques.