What is risk management?
In the context of cyber security compliance, risk management refers to the process of identifying, assessing and reducing security risks that could threaten an organisation's systems, data, or operations. The goal of risk management is to reduce the likelihood and impact of security threats, whilst still ensuring compliance with regulations and compliance standards.
The process typically involves several key steps:
Risks must be identified. Risks can include, but are not limited to, cyber attacks, data breaches, or system failures.
Once identified, each risk is then assessed based on the likelihood of it occurring, and the potential damage that it could cause.
Controls are implemented to mitigate identified risks, such as access controls, encryption, or stronger firewalls.
Many compliance standards such as ISO 27001 and SOC 2 require businesses to have risk management process and strategies in place, as this demonstrates that potential security risks are managed and prevented to the best of an organisation's ability, rather than only being addressed after an incident has occurred.
The process typically involves several key steps:
Risks must be identified. Risks can include, but are not limited to, cyber attacks, data breaches, or system failures.
Once identified, each risk is then assessed based on the likelihood of it occurring, and the potential damage that it could cause.
Controls are implemented to mitigate identified risks, such as access controls, encryption, or stronger firewalls.
Many compliance standards such as ISO 27001 and SOC 2 require businesses to have risk management process and strategies in place, as this demonstrates that potential security risks are managed and prevented to the best of an organisation's ability, rather than only being addressed after an incident has occurred.
Updated on: 18/02/2025
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