Section 9.83 Risk Identification and Analysis Flashcards
Objective 5.2: Explain elements of the risk management process
Risk Identification
■ Crucial first step in risk management which involves recognising potential risks that could impact an organization
■ Risks can vary from financial and operational to strategic and reputational
Risk Identification
Techniques
● Brainstorming
● Checklists
● Interviews
● Scenario Analysis
■ Organization should consider a wide range of risks, including operational, financial, strategic, and reputational risks
■ Document and analyze risks based on impact and likelihood
Risk Analysis
Business Impact Analysis (BIA)
All business have functions and processes that they follow to achieve thier objectives
BIA addresses the potential impact of DISRUPTION amongst the functions and processes.
BIA helps
■ Identify the critical functions/processes
■ Analyse the impact of risks on functions/processes
■ Determine recovery time for functions/processes after disruption
BIA uses 4 key METRICS to help reduce the damage
Key Metrics in Business Impact Analysis
Recovery Time Objective (RTO)
○ Maximum acceptable time before severe impact
○ Target time for restoring a business process
Key Metrics in Business Impact Analysis
Mean Time to Repair (MTTR)
○ Average time to repair a failed component or system
○ Indicator of repair speed and downtime minimization
Key Metrics in Business Impact Analysis
Recovery Point Objective (RPO)
○ Maximum acceptable data loss measured in time
○ Point in time data must be restored to
Key Metrics in Business Impact Analysis
Mean Time Between Failures (MTBF)
○ Average time between system or component failures
○ Measure of reliability of your systems
