What is typically the first step taken to initiate a risk management process?

Identifying assets is the foundational step in the risk management process because it establishes a clear understanding of what needs to be protected. This includes recognizing all valuable information, systems, and resources within an organization. By identifying assets, an organization can gauge the potential impact of threats against them, prioritize resources for protection, and focus on maintaining the confidentiality, integrity, and availability of these assets.

When an organization knows what its critical assets are, it can effectively assess vulnerabilities, determine threats, and analyze risks associated with those assets. This step is crucial because it lays the groundwork for the subsequent phases of the risk management process, including assessing existing controls, evaluating potential risks, and ultimately, implementing necessary safeguards. Recognizing the assets ensures that all relevant factors are considered in the risk management strategy, making the process more informed and relevant.