Risk assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat (also called hazard). Quantitative risk assessment requires calculations of two components of risk(R):, the magnitude of the potential loss (L), and the probability (p) that the loss will occur.

Risk Assessment Steps
Risk Assessment Benefits
  • Identify the hazards
  • Decide who might be harmed and how
  • Evaluate the risks and decide on precaution
  • Record your findings and implement them
  • Review your assessment and update if necessary
  • Plug Security Holes
  • Determine Security Requirements
  • Justify Spending
  • Review Purchases
  • Improve Planning