Risk assessment is an estimate of risk related to a well-defined situation or recognized threat. Typically, the risk assessment will include an estimate of the size of the potential loss related to the risk, as well as the probability that the loss will occur for a given risk. When undertaking a risk assessment plan, an organization should define its acceptable level of risk. With this criteria in mind, the organization can then create policies and prioritize the use of resources to manage risk. These guidelines and policies aid stakeholders in making decisions about whether to accept, avoid, transfer, mitigate, or attempt to exploit the risk.
Read our blog about the Power of Combining Risk Analysis with Risk Assessments in Third Party Risk Management. Would you like to learn more about automating your risk assessments? Request a demonstration of the Rsam GRC platform.