Question

In reference to risk managment strategies, discuss the impact of potential loss, threats, and vulnerabilities to organizational assets, as well as how loss will impact functionality within a business or government.

Answer 1

Risk management strategies are crucial for the organization as they help in minimizing the occurrence of any risk in the system. The risk, if permeates in the system, can lead to a potential loss, threat or vulnerabilities to the organizational assets.

Risk is actually the product of threat and vulnerability. Hence, with the occurrence of threat and vulnerability, the magnitude of risk multifold and the impact of potential loss become quite high.

Some of the potential losses that can impact the organizational assets are:

• Financial losses
• Damage to organizational assets
• Loss of privacy
• Legal implications

Any loss of the organizational asset will impact the normal processing of system and will incur huge transaction costs on business. Deadline adherence of the project will be impacted, adding to the losses incurred by the company.