Risk Management Strategies - 5.2
Summary
Risk management strategies include transferring risk to third parties, accepting and managing certain risks, avoiding risky activities, mitigating risks through proactive measures, and reporting risks to inform decision-making.
Notes:
Transfer
- Shift the risk to a third party, such as through purchasing cyber insurance or outsourcing certain operations.
Accept
- Choosing to take responsibility for the risk, typically when the cost of mitigating the risk outweighs the potential impact.
- Exemption: A long-term solution where a company policy formally excludes a particular risk, usually due to it being low priority or unavoidable.
- Exception: A temporary deviation from standard policies to address an immediate risk while planning for its mitigation.
Avoid
- Eliminate the risk entirely by discontinuing or avoiding the activity that generates the risk (e.g., choosing not to use a risky technology).
Mitigate
- Reduce the impact or likelihood of the risk through proactive controls, such as implementing security measures or improving processes.
Risk Reporting
- Systematically documenting and communicating identified risks, mitigation plans, and risk statuses to upper management to support decision-making.