Risk management systems are an integral part of running any business that identify and handle any risks that a company may face in the course of its growth. There are strategies to tackle risks and avoid failures and it is possible to prophesize what the threats are that may surface in the future. The idea is to detect the problems before they erupt and in doing so, many tools and methods come into play in the whole process of risk management.
Risk management gives companies the much needed time to rectify any errors and take precautionary steps before disaster strikes. There are many steps involved in achieving this ultimate goal like: identifying risks, analyzing them, reviewing the degree to which they may occur, understanding risks and how to react to them, and using methods to stop the risk from surfacing. The information technology revolution has completely revolutionized the way companies work, how governments operate and the manner in which national defense is conducted. These systems need to be protected at all costs from threats by hackers, corporate raiders, spies, and criminals, each with a vested motive and interest in challenging the technology for political and monetary gains.
Security risk management studies suggest that risk is a fundamental metric in security management. Nothing is ever certain business and how much the risk is likely to be is based on the possibility that an unwanted event will happen which will have a certain impact on the business. Thus appropriate controls need to be put at the right places to help contain this impact and protect the business. Trying to do away with all business-related risks is never a sound business decision when analyzed from the point of view of costs. Security risk management is in sync with the way business executives take decisions because it allows security managers to communicate in a way that makes sense to decision makers. Using risk management tools also helps security personnel to stay in touch with business goals instead of simply concentrating on destroying any threat as soon as it raises its ugly head.
On the other hand however, decision makers may get too used to accepting threats and might even try to make a business case justifying their need to protect against some development that might not have happened yet. Security risk reduction is basically guesswork and can never be measured accurately since the impact of what will happen in the future depends on certain variables that are themselves dependent on unknown motives and resources operating from not known locations at unknown times. Assessing a risk is not only difficult but also not too effective since the quantitative costs pertaining to an incident cannot be accurately determined. Moreover, a risk assessment that had been made on a previous day may produce quite different results when performed the following day because risks are known to evolve over a period of time.