What is the purpose of a risk assessment?

The purpose of a risk assessment is to identify and evaluate risks to determine their potential impact. This process helps organizations understand the vulnerabilities they face and the likelihood of those vulnerabilities being exploited. By systematically identifying risks, organizations can prioritize them based on their potential impact and likelihood of occurrence. This knowledge allows for the development of strategies and controls to mitigate or manage those risks effectively.

Risk assessments are a critical component of information risk management, providing insights that inform decision-making, resource allocation, and ultimately, the organization’s security posture. It is not focused on implementing new technology, conducting employee evaluations, or establishing marketing strategies, which serve different functions within an organization. The primary goal is to enhance the organization’s ability to safeguard its assets and ensure compliance with relevant regulations and standards.