The process by which an organization does a self-study to define potential losses or reduce risks is called?

The process by which an organization does a self-study to define potential losses or reduce risks is called?

• A. Risk assessment
• B. Risk management
• C. Security auditing
• D. Incident response

Answer: (B)

Risk management is the ongoing process of identifying, evaluating, prioritizing, and mitigating risks to an organization. When a team conducts a self-study to define potential losses and figure out how to reduce those risks, they’re engaging in the full cycle of risk management—understanding where exposures come from and putting controls in place to lower that exposure, then monitoring and adjusting as needed. This goes beyond simply identifying risks (which is risk assessment) or just checking how well controls exist (security auditing) or reacting after an incident (incident response). The self-study context inherently points to applying measures to minimize risk over time, which is the essence of risk management.

Risk management is the ongoing process of identifying, evaluating, prioritizing, and mitigating risks to an organization. When a team conducts a self-study to define potential losses and figure out how to reduce those risks, they’re engaging in the full cycle of risk management—understanding where exposures come from and putting controls in place to lower that exposure, then monitoring and adjusting as needed. This goes beyond simply identifying risks (which is risk assessment) or just checking how well controls exist (security auditing) or reacting after an incident (incident response). The self-study context inherently points to applying measures to minimize risk over time, which is the essence of risk management.