Risk procedures and concepts

Risk is the probability that an event will happen—it could bring profit to you, for example if you place a bet on the roulette wheel in a casino then you win more money. It is, however, more likely that a risk will result in financial loss or loss of service. Companies will adopt a risk management strategy to reduce the risk being posed to them but may not be able to eliminate the loss completely. In information technology, newer technology comes out every day and poses more risk to a business so therefore risk management is ever evolving.

The main components are assets, risks, threats, and vulnerabilities:

• Asset: The first stage in risk management is the identifying and classification of the asset. If the asset is a top—secret document, you will handle and store it differently from an asset that is unclassified and available for free on the internet.
• Risk: Risk is the probability that an event could occur, resulting in financial loss or the loss of service.
• Threat...