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. |