Page 46 - DCAP309_INFORMATION_SECURITY_AND_PRIVACY

Information Security and Privacy Manmohan Sharma, Lovely Professional University

Notes Unit 4: Risk Analysis

CONTENTS
Objectives
Introduction

4.1 Risk
4.2 Risk Management
4.2.1 Internal Factors

4.2.2 External Factors
4.2.3 Steps involve in Risk Management
4.3 Risk Analysis
4.3.1 Basic Principles of Risk Assessment
4.4 Approaches and Considerations

4.4.1 Acceptance
4.4.2 Avoidance
4.4.3 Transfer

4.4.4 Reduction
4.5 Summary
4.6 Keywords
4.7 Review Questions
4.8 Further Readings

Objectives

After studying this unit, you will be able to:
 Understand the concept of risk management

 Explain the concept of risk assessment
 Discus various approaches and considerations to risk analysis
Introduction

Most of us hate the idea of risk. While we collectively spend a great deal of time and money to
reduce it, we can never hope to eliminate it. The reason is that some amount of uncertainty is “built
in” to all aspects of the world around us. In fact, at the smallest level of physical reality, quantum
physicists must deal only in probabilities, as they cannot predict with certainty which events will
occur, or where or when they might occur. The very word “risk” tends to make us nervous, as it
portends the probability that something bad may happen to us. The word “happen” is also a clue
to our deep concerns about risk, because it indicates events that are out of our control.
In this unit we will discuss the concept of risk analysis and risk management.

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