Risk Management
Read this page and watch the video to learn more about the purpose of risk management and the four stages of the risk management process. Before you move on, make sure you have a good understanding of the formulas, and that you are able to use the formulas on this page to calculate single loss expectancy (SLE), annual rate of occurrence (ARO), and annual loss expectancy (ALE).
Summary
This lesson examined the principle of risk which takes an event and combines its probability with its potential impact. Risk management is the process that an organization employs to identify, assess and prioritize risk. The lesson discussed qualitative and quantitative risk analyses which are both methods used to analyze and rank risk based on financial or operational impact and likelihood of occurrence. The lesson concluded with a discussion on evaluating security control measures.