What are the five most important things to consider when conducting a risk analysis?
1. Define the purpose and scope of the risk analysis. This step helps you determine what you'll be attempting to achieve with the RA.
2. Identify the business functions that may be at risk. This step further pinpoints the business issues (e.g., people, process, technology, facilities) for which you are conducting an RA.
3. Identify the most likely risks that could affect the business functions. This step identifies what risk/threat situations (both internal and external) are likely to affect the operation of the business functions in question.
4. Define the risk metrics that you want to analyze. This step identifies the risk metrics to be analyzed, e.g., statistical probability of a risk occurring, potential damage to the business function (or whatever is being analyzed) if the risk occurs, and (optionally) the financial impact if the risk occurs.
5. Determine how the results will be used (often in conjunction with BIA results). Once the RA outputs have been obtained, the final step is to determine how they will be used, e.g., to identify business functions that are at the highest risk of disruption.
This was first published in September 2013