Domain 2 Risk Treatment:Risk Response Options

This set of flashcards covers key concepts, terms, and definitions related to risk management methods discussed in the lecture.

Risk Management

A process consisting of three major steps: asset valuation, risk analysis, and risk treatment.

Asset Valuation

The step in risk management where valuable assets are identified.

Risk Analysis

The step in risk management that involves identifying risks associated with assets.

Risk Treatment

The step in risk management that determines how to address identified risks.

Risk Avoidance

A method of risk treatment where the risky action is not taken to prevent risk exposure.

Risk Transfer

A method of risk treatment that involves transferring the financial risk to another party, often through insurance.

Accountability

Responsibility that cannot be delegated or outsourced, particularly regarding data protection.

Risk Mitigation

The implementation of controls aimed at reducing identified risks.

Residual Risk

The risk remaining after mitigating controls have been applied.

Risk Acceptance

A method of risk treatment where the asset owner acknowledges and accepts the risk.

Cost Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options that provide the best approach to achieve benefits while preserving savings.

User Acceptance

The willingness of users to adhere to new controls and processes, which may affect the effectiveness of those controls.

Mitigating Controls

Actions implemented to reduce risk exposure.

Insurance

A form of risk transfer where an organization purchases policies to cover potential data breaches or issues.

Directive Controls

Controls that dictate or instruct specific behaviors within an organization.

Preventative Controls

Controls that are designed to avert problems before they occur.

Detective Controls

Controls that are implemented to identify when problems occur.

Corrective Controls

Controls that are designed to fix an issue after it has occurred.

Decommissioning Costs

Costs associated with properly removing and disposing of controls once they are no longer needed.