This article answers following queries:
·
What is risk?
·
What is risk assessment?
·
What is risk management?
·
Define risk or risk assessment or risk
management
·
What are the types of risk in ITIL?
A Risk is nothing but “Uncertainty of outcome”
Risk
Assessment means the process of
ü
Identification of risks
ü
Assessing threats and vulnerabilities
ü
Quantifying the impact and probability of risk occurrence
ü
Developing mitigation strategies
Risk
Management means setting up a process to
·
Monitor Risks
·
Obtain reliable up-to-date information about
risks
·
Control risks
·
Enable decision making
Risk Types:
There are four main types of risks.
§
Strategic Risk: These types of risks pose threat to
the strategy of the organization. Ex: A new competitor enters to market with a
new strategy
§
Financial Risk: These types of risks occurrence due
to financial aspects. Ex: Non-paying customers, Risk in interests on bank loans
obtained etc.
§
Operational Risk: These types of risks results
from impact caused to operations
§
Ex: Non-functioning or damage to key production equipment
§
Compliance & Regulatory Risk: These types
of risks occur due to compliance and regulation aspects. Ex: Modification to existing rules leading to
risk to organization, introduction of new laws or rules impacting existing
business setup
