How to Perform an Effective Risk Analysis on Your Business

With escalating rates of crime in the digital world, it is becoming increasing important to understand the threats to your business. Cyber crime losses cost organizations billions each year, and no business is safe; which is why liability insurance for your New Mexico business is so essential in this day and age.

Know the risks so you can guard yourself against them. The risks associated with both malicious crime and human error should now be added to one’s risk management methodology.

Ideally, organizations will have comprehensive enterprise risk management framework. However, immediate risk assessment requires a step-by-step plan for a successful security strategy.

Collect and Assess Information

Take stock of your business’s resources such as hardware, software, and data assets, then decide which are critical to your business. Think about what your business’ key objectives are and what assets are essential to meeting those goals. Collecting and assessing information will most likely be a lengthy step in the process but maximizing comprehension will help achieve real value from a security risk assessment.

Pinpoint Threats and Vulnerabilities

It is crucial to understand what may be considered a threat to your organization. A business’s geographical location can be considered a threat, particularly if it is located in a crime-ridden area or an area prone to damaging natural disasters (such as a flood zone).

Assess any vulnerability you may have to create a detailed list of your potential threats and how your specific vulnerabilities could expose you to greater risks.

Estimate Impact

Predict what could happen to your business if each threat became a reality. Classify the impact as either low, medium or high. What significant impact would a robbery, data breach, or system downtime have on your business? Security-related incidents can be classified in terms of how the event affected your integrity, availability and confidentiality. You may want to utilize qualitative and quantitative approaches and methods to assist you.

Implement Controls

Come up with a plan for preventative measures. Consider strategies and controls to implement to mitigate or eliminate identified risks. You cannot completely bypass all risks, but the aim is to reduce risks to a manageable level.

Security policies and controls outline specific responsibilities of different groups of people, from the procurement and setting up of new infrastructure to the implementation of new processes.

Security Techniques

Decide what tools and techniques to use to reduce threats. You must get into the details of your internet technology security. Know how you’ll implement password systems, what tools will be used to automate data backups, and techniques to manage user accounts. Find the right solutions and procedures to match your company’s unique requirements. Continue monitoring and repeat this cycle periodically as threats are evolving rapidly.

About Daniels Insurance, Inc.

At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.

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