Risk Management Process

Data protection must focus on efficient yet effective policy implementation without negatively affecting an organization's business operations and productivity. To achieve this, organizations must follow a process called the risk management process.

This process involves the following five steps:

Step Explanation
Identifying the Risk Identifying risks the business is exposed to, such as legal, environmental, market, regulatory, and other types of risks.
Analyze the Risk Analyzing the risks to determine their impact and probability. The risks should be mapped to the organization's various policies, procedures, and business processes.
Evaluate the Risk Evaluating, ranking, and prioritizing risks. Then, the organization must decide to accept (unavoidable), avoid (change plans), control (mitigate), or transfer risk (insure).
Dealing with Risk Eliminating or containing the risks as best as possible. This is handled by interfacing directly with the stakeholders for the system or process that the risk is associated with.
Monitoring Risk All risks must be constantly monitored. Risks should be constantly monitored for any situational changes that could change their impact score, i.e., from low to medium or high impact.