Guide: Risk Assessment and Management

Risk Assessment and Management:
Risk assessment and management is a vital element within Business Continuity and Disaster Recovery Planning. It involves identifying potential risks, assessing their potential impact upon the business, and establishing plans to mitigate and manage the risks.
Importance:
Risk Assessment and Management is key to ensuring an organization's survival and continuity in the face of unexpected disasters or disruptions. It provides a structured approach to identify risks, evaluate their potential impact, and implement appropriate risk treatment plans.
How it works:
Both qualitative and quantitative methods are used to assess and manage risks. Quantitative risk assessment involves calculating the potential loss from a risk, where qualitative risk assessment is based on the probability and impact of risks.
Exam Tips - Answering Questions on Risk Assessment and Management:
Understanding the concepts and the applicability is key to answering the exam questions. Always use a structured approach for risk assessment, identifying the risk, assessing the potential impact and then the risk response. Use the specific terms from the subject like risk tolerance, risk capacity, etc., in the answers. Know the difference between different risk assessment techniques - quantitative and qualitative.