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INTRODUCTION TO RISK MANAGEMENTRisk management is the procedure of identifying and controlling risks facing an organization. Risk management is the discipline which is employed for identifying, monitoring and limiting risks. In some of the cases the acceptable risk can be near zero. Risks can occur from accidents, natural calamities and disasters as well as deliberate attacks from an adversary. The several components of risk management and their relationship to each other are shown in Figure given below.2.1.The main ISO standards on risk management include in businesses, risk management organized activity to manage threats and uncertainty and involves people following procedures and by using tools in order to ensure conformance with risk management policies Components of Risk ManagementThe whole process is made up of 2 major components. They are• Risk identification is the procedure of examining and documenting an organization’s present information technology security situation.• Risk control is the procedure of applying controls to reduce risks to an organizations data and information system.Risk management is used in the public sector to identify and mitigate the risk to critical infrastructure. These methodologies comprise of the following elements, performed in the following order.• identify assets and identify which are the most critical• identify, characterize, and assess the threats• assess vulnerability of critical assets to specific the threats• determine the risk (that is the expected consequences of specific types of attacks on specific assets)• identify the methods to reduce those risks• prioritize the risk reduction measures based on strategy
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