Risk identification & assessment
In the previous part, we looked at BCM and its importance in every type of organisation. The main areas of focus in BCM were also introduced. Today’s episode will look at Risk Identification and Assessment in the BCM process.
Risk identification and assessment is a critical component of BCM, as it helps organisations understand the potential threats they face and the impact those threats could have on their operations.
The first step in risk identification and assessment is to conduct a vulnerability assessment, which involves identifying the organisation’s assets, systems and processes that are critical to its operations. These assets, systems and processes are then evaluated to determine their susceptibility to various risks, such as natural disasters, cyberattacks and pandemics.
Next, organisations conduct a threat assessment that involves identifying the likelihood and potential impact of specific risks. For example, an organisation may determine that a natural disaster such as a hurricane is a high-likelihood threat, but that its impact on operations will be relatively low. On the other hand, a cyberattack may be a low-likelihood threat but its impact on operations could be significant.
After identifying the risks and their potential impact, organisations can prioritise them based on their likelihood and potential impact. This helps organisations focus their efforts on the risks that pose the greatest threat to their operations.
Once risks have been identified and prioritised, organisations can develop plans to mitigate them. For example, an organisation may install a back-up generator to ensure continuity of operations in the event of a power outage caused by a natural disaster. Alternatively, organisations can implement security measures to protect against cyberattacks.
It is important to note that risk identification and assessment is an ongoing process. As the organisation and its environment changes, so do the risks it faces. Therefore, organisations should regularly review and update their risk assessments to ensure they are aware of the latest threats and vulnerabilities.
In conclusion, risk identification and assessment is a crucial component of business continuity management. It helps organisations understand the potential threats they face and the impact those threats could have on their operations. By identifying and prioritising risks, organisations can develop plans to mitigate them and ensure continuity of operations in the event of a disruptive event.
>>>The writer is a certified ISO 22301 Lead Implementer with 13+ years banking experience in Enterprise Risk Management, Modelling & Portfolio Analytics. She can be reached via email at [email protected]
