risk analysis

Risk analysis is the process of defining and analyzing the dangers to individuals, businesses and government agencies posed by potential natural and human-caused adverse events. In IT, a risk analysis report can be used to align technology-related objectives with a company's business objectives. A risk analysis report can be either quantitative or qualitative.

In quantitative risk analysis, an attempt is made to numerically determine the probabilities of various adverse events and the likely extent of the losses if a particular event takes place.

Qualitative risk analysis, which is used more often, does not involve numerical probabilities or predictions of loss. Instead, the qualitative method involves defining the various threats, determining the extent of vulnerabilities and devising countermeasures should an attack occur.

Learn more about Risk assessments and metrics

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More resources from around the web: - Shon Harris' Risk Management Guide explains how to conduct a risk analysis. - The Society for Risk Analysis provides an open forum for people interested in risk analysis. - The Harvard Center for Risk Analysis is devoted to the use of decision sciences to promote public health and welfare. - Mike Rothman explains integrating business continuity planning and operational risk management. - This tip looks at how to measure security risks, threats and vulnerabilities. - Mike Chapple discusses how to prepare for a network security audit.

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