Risk management in business can take on many forms. It is defined as a process of identifying, tracking, assessing, and controlling risks to business and customer satisfaction. The steps used to implement risk management in business vary according to the type of risk being managed. In this article, we look at some of the more popular methods for risk management.

Security risk management can be divided into two categories: internal and external. For the discussion here, the term internal risk refers to the risk to the internal processes of the business or organization. External threats are those that affect the organization's customers, suppliers, customers, competitors, business partners, and the public. Internal risk management focuses on identifying the sources of the risks. External risk management is concerned with identifying effective countermeasures to prevent or minimize the occurrence of a threat.

For instance, an organization might wish to focus on implementing a system of security risk management. In this system, risk management would involve identifying the risks and how the organization can reduce them. The main aim of security risk management is to identify risks and measure and manage the associated costs and the impacts of these risks. In other words, it helps to secure the organization from all forms of threats and assists in the development of acceptable security policies.

When carrying out security risk management, the security manager is assisted by three different types of people: personnel, systems, and technology. These are organised into a risk assessment, security plan, and risk management plan.

Personnel is an aspect of risk management that requires consideration of the staff that the organization employs. Some risks pose a direct threat to the organization's assets, and some need to be mitigated. Other chances are more indirect and require the involvement of staff in management, security, and reporting roles. Having an understanding of the team needed to carry out various tasks will allow you to create the right security risk management plan. An organization that performs a range of business processes may have an increased level of employees required to carry out these functions. However, the same organization will still need individuals to carry out those functions. It might, therefore, be necessary to allocate additional resources to these activities and so a requirement to perform individual risk assessments and provide appropriate security controls and countermeasures.

A business process can be divided into components. Different people involved in the process may also require different levels of staffing or skill sets. As a result, organizations may need to have several teams to develop risk management plans for these components.

The use of security controls and countermeasures is only one aspect of risk management. It is often the case that control systems are difficult to maintain, or that they are not required at all. There may also be a risk that a system may no longer meet the needs of the business.

A software program may require updates to its security settings and procedures every few months. This problem can occur with any software program, including computer systems. However, the use of a security risk management tool can help to identify the issues before they become problems and help to prevent the occurrence of the issues.

The development of a risk management plan can be initiated at various stages. In a business environment, the main risk is usually considered to be the risk of data loss. When looking to develop security risk management plans, it is essential to consider the potential costs of data loss.

It should be remembered that there are steps that should be taken to protect against data loss, including creating and implementing appropriate security measures. There are a variety of security measures that can be implemented, but many of them involve the application of current knowledge about the distribution of information within the organization.

As was mentioned above, many steps should be taken to address specific security risk management requirements. It is also essential to consider the current skill levels in the organization and any time pressures that may exist. It is also important to consider the costs of the various methods that have been discussed and identify the effectiveness of those methods.

Author's Bio: 

DefendX is the worldwide leader in the management and control of unstructured file data. Every day, our technology manages the storage resources of more than 20 million users.

- Our legacy is built on technology excellence and open solutions have been proudly self-funded since the beginning
- Our seamless solutions offer true, multiplatform flexibility, and have been used on every continent (including Antarctica)
- Our partners are market-leaders, including DellEMC, Hitachi Vantara, Microsoft, and NetApp

Our goal is simple. We want to help you regain control of your storage environment by giving you the information you need to understand, optimize, and manage it. We’ll help you bring structure to your unstructured data. And we’ll do it in a way that improves your day-to-day efficiency and respects your budget.