Risk analysis and treatment report risk analysis

Risk analysis and treatment

1. RISK ANALYSIS AND
RISK TREATMENT
BY, MICAELLARUBIO

2. DEFINITION
•Risk analysisis the process of assessing
the likelihood of an adverse event
occurring within the corporate,
governmental, or environmental sectors.
•The term risk analysis refers to the
assessment process that identifies the
potential for any adverse events that may
negatively affect organizations and the
environment.

3. TYPES OF RISK ANALYSIS
a risk-benefit analysis compares
potential benefits with associated
potential risks.
A. Risk-Benefits

4. Needs assessment involves identifying and
evaluating the gaps between current
conditions and desired outcomes related to
risks.
B. Needs Assessment
C. Impact Assessment
Reflect the assessment of how various risks
could affect the delivery of public services
and the overall functioning of governmental
agencies.

5. A root cause analysis is performed because
something is happening that shouldn’t be.
This type of risk analysis strives to identify
and eliminate processes that cause issues.
D. Root Cause Analysis

6. ADVANTAGES AND DISADVANTAGES
OF RISK ANALYSIS
PROS
•Informed Decision-Making:
Provides data-driven insights
that enhance policy
formulation and resource
allocation.
CONS
•Complexity: Risk analysis can
be intricate and resource-
intensive, requiring
specialized expertise that
may be lacking.

7. PROS
•Proactive Risk Management: Identifies
potential risks early, allowing for
preventative measures and reducing the
likelihood of crises.
•Enhanced Public Safety: Improves
preparedness for emergencies,
safeguarding citizens and minimizing
damage during disasters.
CONS
•Data Limitations: Inaccurate or
incomplete data can lead to flawed
assessments and misguided decisions.
•Political Influence: Outcomes of risk
analysis may be affected by political
agendas, leading to biases in prioritizing
risks.

8. DEFINITION
•Risk treatment is a collective term for all
the tactics, options, and strategies chosen
to respond to a specific risk, bound to
achieve the desired outcome concerning
the threat.
• The plan of implementing various
strategies, activities, and actions to
appropriately deal with the threat and
manage it in a possibly profitable way.

9. FIVE STEPS OF RISK
TREATMENT
•Brainstorming and selecting the right risk
treatment option.
•Planning and use of options chosen
•Examining the effectiveness of the chosen tactics.
•Deciding whether the level of the remaining risk, i.e., residual risk, is
acceptable or not.
•If it’s not acceptable, implementing new risk treatment activities to reduce
the residual risk.

10. RISK TREATMENT
OPTIONS
•Risk Avoidance: The avoidance strategy is linked
to interpreting the risk as unfavourable to the
point that it should be excluded entirely.
Examples of risk avoidance as part of the risk treatment strategy is to change
your processes, equipment, or materials.

11. •Risk reduction is an important risk treatment
strategy because it requires taking action to
reduce the impact of a given risk while
maximizing the benefits obtained from taking
such action(s).
There are two steps to reduce risk:
•1. Preventive Methods including human resources and staff training,
legislation compliance, quality control measures, auditing, regular
maintenance, security systems installation.
•2. Implementation of procedures such as data backups, emergency
procedures, minimize exposure to highest-rated risks

12. •Risk Transfer: Transferring risk is related to passing a specific
portion of the threat to another party to reduce its likelihood
or impact on the organization.
•Risk Retention may refer to a risk management strategy that
involves a party assuming the responsibility for a certain level of
risk or losses. This term may also refer to the amount of risk
that a party is willing to accept before transferring it to another
party through insurance or other forms of risk transfer.

13. RISK TREATMENT PLAN
A Risk Treatment Plan is a document in which the company’s policy
regarding risk treatment is outlined in detail.
•Risk Management Standard (ISO/IEC 27005)
This set of standards developed by the International Organization for
Standardization (ISO) and the International Electrotechnical
Commission (IEC) provides guidelines for ensuring information security
and recommended processes and models concerning risk management.

14. THANK YOU FOR LISTENING!!