Question

What is meant by the phrase “assigning value to loss?” Is it the risk analyst’s responsibility to assign value to loss? If not, whose responsibility is it? Why? (This is for Security and Risk Analysis class.)

Answer 1

"Assigning value to loss" is the probability of loss to a particular asset once the threat associated withit is realised. The risk management team is assigned with the task to identify and evaluate risk. Before considering an asset firstly it is important to value an asset which requires special skills adhered to management team of each organization. The losses attached to an asset can be immediate or delayed so performing threat identification is the next crucial task of the team.

there are two types of risk assessment; qualitative and quantitative risk assessment and assgining value to threat or loss is a part of quantitative risk assessment.