Domain 2 Risk Management - Information Risk Management and Compliance

A set of flashcards covering key concepts in risk management and compliance based on the lecture notes provided.

Risk Management

The process of identifying, assessing, and prioritizing risks followed by coordinated application of resources to minimize, monitor, and control the probability or impact of unfortunate events.

Asset Valuation

The process of determining the value of an asset, which can be done quantitatively (using monetary values) or qualitatively (using grades such as high, medium, or low).

Quantitative Asset Valuation

Understanding an asset's value in numerical terms, typically expressed in monetary values.

Qualitative Asset Valuation

The assessment of an asset's value using descriptive terms, categorizing value as high, medium, or low.

Risk Analysis

The process of assessing risks to understand their potential impact on the value of assets.

Quantitative Risk Analysis

Analyzing risks using numerical values to estimate the monetary loss that may result if a risk is realized.

Qualitative Risk Analysis

Assessing risks using descriptive grades (like high, medium, low) or colors to evaluate the potential impact.

Risk Treatment Options

Strategies for addressing risks, including avoiding, transferring, mitigating, or accepting them.

Risk Acceptance

The decision to accept the level of risk rather than eliminate it, often based on a cost-benefit analysis.

Risk Tolerance

The degree of variability in investment returns that an individual is willing to withstand in their financial planning.

Threat

Any potential danger that can exploit a vulnerability and impact the value of an asset.

Vulnerability

A weakness in an asset or system that can be exploited by a threat to cause harm.

Continuous Risk Management

The ongoing process of regularly revisiting and reassessing risk management steps to adapt to changes in asset value or emerging risks.