Risk management is the ongoing process of identifying, assessing, and responding to risk. To manage risk, organizations should understand the likelihood that an event will occur and the potential resulting impacts. With this information, organizations can determine the acceptable level of risk for achieving their organizational objectives and can express this as their risk tolerance.
With an understanding of risk tolerance, organizations can prioritize cybersecurity activities, enabling organizations to make informed decisions about cybersecurity expenditures. Implementation of risk management programs offers organizations the ability to quantify and communicate adjustments to their cybersecurity programs.
Organizations may choose to handle risk in different ways, including mitigating the risk, transferring the risk, avoiding the risk, or accepting the risk, depending on the potential impact on the delivery of critical services.