Understanding Risk Management

Risk is defined as the potential for negative outcomes, which opens the conversation around risk management. Many organizations often confuse risk with incident management, which deals with past problems, whereas risk management focuses on future threats. A proper understanding of risk involves differentiating between vulnerabilities and threats; vulnerabilities are weaknesses, while threats are potential exploiters of those vulnerabilities. A foundational component of risk management is being able to assess the likelihood and potential impact of identified risks.