In this lesson,
we will learn about risk response.
Risk response is the implementation of controls
to mitigate identified risk.
Risk response concepts include validation,
which confirms the accuracy
and completeness of identified risks.
Severity impact,
which quantifies the potential consequences
of validated risks to guide prioritization.
And remediation,
which results in the implementation
of actionable risk management and mitigation strategies.
Now let's dive deeper into each
of these three risk responses.
First, we have risk validation.
Risk validation is an important part of responding to risks
because it helps you figure out if a potential problem
is a real or false alarm.
Imagine you're studying for a big exam
and you hear a rumor that the test date has changed.
Before you panic
and change your study schedule,
you need to check
to see if the rumor is true.
That's risk validation.
To do this, you might ask your teacher
or check the official class website
to confirm the test date.
Once you know whether the risk is real
or not, then you can decide what to do next.
In risk management, validation works the same way.
It's all about confirming if a risk is actually something
that we need to worry about.
In an enterprise environment,
risk validation might happen when the IT team receives an
alert about a possible security breach.
Before jumping to conclusions, they investigate
to confirm if the threat is real.
For example, an alert about a suspicious login could simply
be an employee accessing the system from a different
location, not necessarily a hacker.
So the team checks the system logs
and runs diagnostics
to determine whether there really is an actual issue.
By validating the risk,
they ensure resources are spent addressing real problems,
not false alarms.
Second, we have risk severity impact.
Risk severity impact helps us figure out
how much a problem could disrupt our day.
So after asking our teacher
and checking the school website,
we now know the big exam test date has indeed changed.
We now need to determine
how much this change will affect our study schedule.
If the new test date is just a day earlier,
the impact might be minor,
requiring only a slight adjustment.
But if the exam was moved up by a week,
the impact could be severe,
requiring us to completely reorganize our study plan.
In a business setting, this is similar
to discovering a confirmed risk like a supplier delay.
The team needs to assess
how much this delay will affect production.
If it's just a small delay,
it might cause minimal disruption,
but if it's a major delay,
it could result in a significant loss of revenue
and missed deadlines.
Understanding the severity helps the company decide
how urgently they need to respond.
Third and last, we have risk remediation.
Risk remediation takes action to fix
or reduce the impact of a confirmed risk.
So we did our research
and we have confirmed
that the big exam test date has moved up by a week.
So we need to change our entire study plan.
Maybe we decide to study extra hours each day
or join a study group to catch up faster.
These are potential remediation steps
to handle our situation in a business context.
Imagine a company discovers
that a phishing attack has compromised
employee email accounts.
The severity is high
because sensitive data could be at risk.
To remediate the situation,
the company takes immediate steps.
They block the affected accounts, force password resets,
and install additional security measures like
multifactor authentication.
They might also conduct employee training
to prevent future incidents.
These are potential remediation steps
and they help the company reduce risk
and protect their data from further damage.
So remember, risk response is the process
of implementing controls
to address identified risks in an organization.
It starts with risk validation,
where the organization confirms whether the risk is real
and accurate, then the severity impact is assessed
to understand the potential consequences of the risk.
This assessment helps prioritize the response based on
how critical the impact might be.
Once validated and assessed,
the final step is remediation.
Remediation involves taking actionable steps to mitigate
or eliminate the risk.
Together these processes ensure
that risks are managed effectively,
minimizing potential disruptions and damages.