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Companies can use a risk assessment framework (RAF) to prioritize and share the details of the assessment, including any risks to their information technology (IT) infrastructure.The RAF helps an organization identify potential hazards and any business assets put at risk by these hazards, as well as potential fallout if these risks come to fruition.In large enterprises, the risk assessment process is usually conducted by the Chief Risk Officer (CRO) or a Chief Risk Manager (CRM).Risk assessment steps How a risk assessment is conducted varies widely depending on the risks unique to the type of business, the industry that business is in and the compliance rules applied to that given business or industry.
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However, there are five general steps that companies can follow regardless of their business type or industry. The first step in a risk assessment is to identify any potential hazards that, if they were to occur, would negatively influence the organization's ability to conduct business.
Potential hazards that could be considered or identified during risk assessment include natural disasters, utility outages, cyberattacks and power failure. After the hazards are identified, the next step is to determine which business assets would be negatively influenced if the risk came to fruition.
These numerical values can then be used to calculate an event's risk factor, which, in turn, can be mapped to a dollar amount.
Qualitative risk assessments, which are used more often, do not involve numerical probabilities or predictions of loss.