Fundamentals of Information Systems Security, 4th Edition

Risk Management’s Importance to the Organization

Risk management is an organization’s ongoing process of identifying, assessing, prioritizing, and addressing risks and is a core business driver necessary to ensure any organization’s longevity. Any organization that does not have a good understanding of risks will stay in operation only until its luck runs out. Sooner or later, a risk will result in a material impact to an organization. If the organization has not prepared for such an event, it might not survive, whereas a good risk management program can help an organization weather the most disruptive realized negative risks and capitalize on realized positive risks.

Each part of the risk management process is separate but will likely occur ...