Risk Management (Sec+)

To identify and assess uncertainties that may impact business or project objectives.

What is the purpose of risk management?

A risk assessment conducted in response to specific events or changing conditions.

What is an Ad-Hoc Risk Assessment?

An assessment conducted at regular intervals (e.g., monthly, quarterly, annually).

What is a Recurring Risk Assessment?

For a specific situation or project and are not repeated.

When are One-Time Risk Assessments used?

Metrics used to measure or predict the likelihood and impact of risks.

What are Key Risk Indicators (KRIs)?

A non-numerical assessment of risks based on categories like low, medium, and high.

What is Qualitative Risk Analysis?

A numerical evaluation of risks using data and calculations.

What is Quantitative Risk Analysis?

The potential monetary loss from a single risk event.
Formula: SLE = Asset Value × Exposure Factor.

What does Single Loss Expectancy (SLE) measure?

The estimated number of times a risk is expected to occur per year.

What is Annualized Rate of Occurrence (ARO)?

The expected monetary loss from a risk per year.
Formula: ALE = SLE × ARO

What is Annualized Loss Expectancy (ALE)?

A risk response strategy where the risk is shifted to another party (e.g., through insurance).

What is Risk Transference?