Regardless of the business size,
every organization should come across any risk associated with business
operations. Risk Management is a process of understanding the threats faced in
the organization and the best practices taken to mitigate the risks. In this
comprehensive blog, we will discuss the Risk Management Lifecycle.
Risk management is a process that
is used to identify, assess, control, and mitigate security risks in the
organization. These risks can be from the area of sources, including financial
uncertainty, strategic management errors, natural disaster, technical glitches,
legal liabilities, etc. It is required to implement resources to minimize,
manage, and monitor the impact of risks in the organization. A systematic,
consistent, and integrated risk management approach helps identify, manage, and
mitigate potential risks effectively.
Risk
Management Life Cycle
The Risk Management Lifecycle is a
holistic and continuous process required to identify, assess, control, and
prevent the organization from risks. It ensures security posture and compliance
with changing external and internal constraints. The Risk Management Lifecycle
helps to enhance the methods designed to predict the adverse events that
negatively impact the organization's business process.
Steps of
the Risk Management Lifecycle
The Risk Management Lifecycle includes five different steps:
1.
Identifying
The first important stage of the risk management lifecycle is identifying the risk. Identifying the possible risk in the organization is required to understand and organize the risks based on their impact and priority. There are various methods to identify and develop a consolidated list of risks:
- Root Cause Analysis
- SWOT Analysis
- Probability and Impact Matrix
- Brainstorming
- Risk Data Quality Assessment
- Risk Assessment Template
- Risk register
2.
Assessing
The next stage is to conduct a risk assessment for the findings to assess the impact level of risk and prioritize them based on the scope, costs, resources, and probability of the risk occurring.
3.
Mitigating
In this Risk Mitigation stage, the actions are implemented based on the control strategy and response planning. The aim of this stage includes the following actions:
- Mitigate the effect associated with the identified risk
- Avoid the risk
- Find the best solutions to respond
4.
Monitoring
Risk Monitoring is a process of monitoring the output of the methodology used to mitigate the risks. It is required to set up continuous monitoring and tracking of the risks to ensure that the risks are identified and mitigated. When a new risk is identified, return to the risk assessment stage to reevaluate the measures.
5.
Reporting
Organizations need to update the analysis and tracking reports regularly, which helps to have a complete history of the risk management lifecycle. It helps to take preventive measures to avoid the same risks in the future.
The Risk Management Lifecycle is an
active and continuous process that goes on even after the completion of the
project. An effective risk management program helps an organization manage and
control all potential risks.
Risk
Management with InfosecTrain
InfosecTrain is one of the best online training and consultancy platforms that offer specialized and professional certification training in the Information security and Cybersecurity domain. It provides an instructor-led training program for Certified in Risk and Information Systems Control (CRISC), for professionals who identify and mitigate enterprise risks by implementing security measures and controls. To know more, check out and enroll now.
