Risk assessment is the process through which one identify, assess, prioritize, control, and monitor risks in daily activities and projects. Risk management is vital in business and health the lack of which can result in putting one's investment or life in jeopardy. Risk assessment in real time are many, and their primary role is the protection of life and property (Cirjaliu, Weinschrott, Gaureanu, & Boatca, 2016). This paper will assess risk assessment in real life as well as a business context and identify the process of risk assessment in both organization and individual level.
Risk Assessment in Everyday Life
Loss of Information in a Personal Computer
Losing information in personal computer drives is a risk that I face every day. As such, assessing the sources of the risk and its extent plays a significant role in ensuring that I am prepared against the occurrence of information loss. Personal computers are close companions, especially for students for storing educational materials as well as personal data such as music, pictures, and other digital information (Stoneburner, Goguen, & Feringa, 2002). The risk assessment at an individual level begins with the identification of the hazard. In the case of losing information on a personal computer, the primary hazard is a loss, theft, virus attack, or hacking. After identifying the danger, the data that is at risk is identified after which the third step involves the establishment of control measures (Stoneburner et al., 2002). In the case of losing personal information in a personal computer, the control measures include installing a certified antivirus, ensuring the firewalls in my personal computer are up to date, investing in cloud data storage and continually changing my computer password to prevent data loss from malicious acquaintances.
Carrying a Risk Assessment in an Organization
Managing Risk of Supplies Fluctuations
In businesses, risk assessment and management is a necessity to achieve the desired profit goals and business continuity. Enterprises are continuously faced by the risk of supply fluctuations, which pose a significant threat to business profitability. As such, supply risk management is standard practice for large scale businesses (Cirjaliu et al., 2016). Unlike personal risk assessment, business risk assessment is more detailed and involves the establishment of the cost or sales implications of a risk occurrence to a business bottom line. Risk assessment in business organizations is tied to the organization long term sustainability. In businesses a risk can be internal or external, in this case, supply chain risk is an external risk because it is caused by supplier's failure to supply goods in time, the supply of defective products or price fluctuations.
The risk assessment process begins with the identification of the risk or situations that pose a threat to a business bottom line. This is followed by the documentation of the risk, which is vital in weighing the overall impact of the risk on the business. Documentation of the risk is essential in setting a severity score for the business to assess its overall impact. The third step is the development of a risk monitoring and reporting system, which is crucial in the proactive management of the risk (Cirjaliu et al., 2016). After understanding the risk controls are established, which seek to reduce the severity of the risk if it occurs or preventing its occurrence ultimately. The last step is the periodic review of the risk periodically, which is crucial in establishing new risks.
Risk Response Options
- Avoidance: This is a response in which a business seeks to eliminate hazards that pose a risk to an organization entirely.
- Risk Acceptance: In some cases, businesses accept a risk, and the action to reduce the risk is not taken. This occurs when risk acceptance is economical compared to the alternative or in the cases where the risk is unlikely, and the consequences are manageable.
- Risk Transfer: Risk transfer is a risk response option in which risk is transferred from one party to another. This is the case when businesses take insurance against certain risks in that if the risk occurs, the consequences are spread to another party.
- Risk Mitigation: Risk mitigation is a risk response that involves taking steps to reduce the adverse effects of the risk. Risk mitigation is aimed at promoting business continuity and recovery (Bekefi, Epstein, & Yuthas, 2008).
Bekefi, T., Epstein, M. J., & Yuthas, K. (2008). Managing opportunities and risks. CMA Canada. Retrieved from http://www.cimaglobal.com/Documents/ImportedDocuments/cid_mag_managing_opportunities_and_risk_march08.pdf.pdf
Cirjaliu, B., Weinschrott, H., Gaureanu, A., & Boatca, E. M. (2016). A Proposal for Risk Assessment Management in a Transport Company. Procedia Economics and Finance, 39, 229-234. Retrieved from https://www.sciencedirect.com/science/article/pii/S2212567116303173/pdf?md5=300804484a75e44c481f1e344c302ef9&pid=1-s2.0-S2212567116303173-main.pdf
Stoneburner, G., Goguen, A., & Feringa, A. (2002). Risk Management Guide for Information Technology Systems. Recommendations of the National Institute of Standards and Technology: NIST SP 800-30 [Elektronnii resurs]. NIST. gov-Computer Security Division-Computer Security Resource Center [sait]/Gary Stoneburner, Alice Goguen, and Alexis Feringa, 800-30. Retrieved from https://www.hhs.gov/sites/default/files/ocr/privacy/hipaa/administrative/securityrule/nist800-30.pdf
Cite this page
Essay Example - Risk and Security Assessment. (2023, Jan 20). Retrieved from https://speedypaper.com/essays/risk-and-security-assessment
If you are the original author of this essay and no longer wish to have it published on the SpeedyPaper website, please click below to request its removal:
- Essay Example: Captain Sullenberger Research
- Treatment of Schizophrenia - Essay Example
- Essay Sample on the Risk of Second Hand Smoke to Non-smokers as Compared to Smokers
- Trump Is Either Intelligent or Popular, Free Essay Sample
- Essay Example on Titanic Technology and Security
- Essay Sample on Learning of Foreign Languages: Reading Anxiety
- Free Essay. Southwest Airlines' Strategic Approach to Human Resource Management