Introduction
The reader will become familiarised with the term risk and it definitions from specifically the ISO 31000 standard of risk management and also the definition of risk from the criminology crime triangle. Which one of these two definitions that are the most suitable for usage within the security industry will be discussed and evaluated. How and why consequence is important when assessing risk priorities and determining where to allocate resources will be examined and answered.
1. Definitions
Security risk management is “the culture, processes and structures that are directed towards maximizing benefits and minimizing disbenefits in security, consistent with achieving business objectives”. (Australia, 2006) And where security is defined as: “the preparedness, protection and preservation of people, property and information both tangible and intangible”(Australia, 2006). Although Brooks (2009) claims that security cannot easily be defined, this text will consider the above definitions from the Handbook of Security Risk Management from Australian and New Zealand standards as true. If this definition is true, what can prevent an organisation from achieving its objectives? One answer might be the effects of risks. How is risk defined?
1.1. Risk according to ISO
The ISO-standard of risk management ISO 31000:2009 defines risk as “effect of uncertainty on objectives” (Australia, 2009) the standard is very generic and this definition may need further explanation. The handbooks for the standard suggests that risk is “the chance of something happening that will have an impact on objectives… measured in terms of consequence and likelihood”. (Australia, 2004) And this definition might be considered to be more understandable. ...
... middle of paper ...
...2006. Sydney: Standards Australia/Standards New Zealand.
Australia, S. (2009). Risk management - Principles and guidelines AS/NZS ISO 31000:2009. 20 November 2009: Standards Australia/Standards New Zealand.
Brooks, D. J. (2009). What is security: Definition through knowledge categorization. Security journal(Journal Article).
Fennelly, L. J. (2004a). Effective Physical Security (3 ed.). Oxford: Butterworth-Heinemann.
Fennelly, L. J. (2004b). Handbook of loss prevention and crime prevention: Elsevier Butterworth Heinemann.
Garcia, M. L. (2000). Truth & consequences. Security Management, 44(6), 44.
Kovacich, G. L., & Halibozek, E. P. (2006). Security metrics management: Butterworth-Heinemann.
Walsh, T. J., & Healy, R. (2009). Protection of Assets Manual (Vol. 1). Alexandria: ASIS International.
Vellani, K. H. (2006). Strategic security management: Elsevier.
Risk management is defined by the Department of Homeland Security (DHS) as “the process of identifying, analyzing, assessing, and communicating risk and accepting, avoiding, transferring or controlling it to an acceptable level considering associated costs and benefits of any actions taken” (DHS 2010a, p. 30). Raymond Decker, Director of Defense Capabilities and Management testified on behalf of the U.S. Government Accountability Office (GAO) before the Subcommittee on National Security, Veteran’s Affairs, and International Relations; House Committee of Government Reform, and further described risk management as the “systematic and analytical process to consider the likelihood that a threat will endanger an asset,
There is a lot of complexity in understanding risk management and its correlation to homeland security. Risk management is a way to approach the fact that securing the homeland is not certain and there are unknown variables in every aspect of life; risk management is a way to narrow down the focus based on quantifiable information determining probability against capability. Risk management plays and integral role in homeland security. Risk management is employed using a formula described in the NIPP for establishing a narrow scope to make the best decision about protecting infrastructure. The risk management formula lays down the foundation to make the most reasonable determination based on the potential consequences, vulnerability, and
As a result, the topic of ‘risk management’ can be related to a biblical passage in The Book of Ecclesiastes, Chapter 11:5-6. According to Solomon, “As thou knowest not what is the way of the spirit, nor how the bones do grow in the womb of her that is with child: even so thou knowest not the works of God who maketh all. In the morning sow thy seed, and in the evening withhold not thine hand: for thou knowest not whether shall prosper, either this or that, or whether they both shall be alike good” (2009, p. 975). Thus, as stated previously, risk consists of uncertainty and risk management is the process of mitigating such risk in order to prevent counterproductive consequences. The Lord is the all-knowing entity throughout the universe, and
The strategies of homeland security seek to combat the risks the nation faces and so by using risk management effective plans and decisions can be formed to address these risks (U.S. Department of Homeland Security, 2001, p.9). In order to carry out the many missions of homeland security, effective and reliable capabilities must be obtained to have the best results, risk management is used to identify these capabilities and also discover what is lacking in the realm of capability (U.S. Department of Homeland Security, 2001, p.9). Without resources it would not be possible to keep the nation safe and keep threats at bay, by using risk management to allocate the best resources and fund projects that have substantial returns homeland security professionals ensure that goals and missions can be accomplished (U.S. Department of Homeland Security, 2001,
Using principles of risk management can help policymakers reach informed decisions regarding the best ways to prioritize investments in security programs so that these investments target the areas of greatest need. (!) The DHS had to establish a risk management framework to help the department target its investments in security programs and disaster recovery based on risk. For DHS to have an effective way of conducting risk management, they had to develop a means for every agency to conduct risk management. DHS created the Risk Steering Committee who vision was to enable individual elements, groups of elements, or the entire homeland security enterprise to simultaneously and effectively assess, analyze, and manage risk from multiple perspectives across the homeland security mission space (National Research Council, 2010). One of their first tasking they took on to get the department on the same page was to establish a common vocabulary in dealing with risk management. The DHS Risk Steering Committee developed the Risk Lexicon, which made a common, unambiguous set of official terms and definitions to ease and improve the communication of risk-related issues for DHS (National Research Council, 2010). It facilitates consistency and uniformity in the usage of reporting risk-related information for the department and allots the Risk Steering Committee to set the priorities by evaluating the
The security professional will then asses the probability of risk , this will be utilised by considering the actual level of treat to the asset. A scoring system of 1-10 should be used to establish levels of threat to an asset, with 1 being the lowest and 10 being the highest. Level of impact to the asset will be considered by the security professional , this could be loss of life or revenue. The CIA tirade, confidentiality, integrity, availability, will Be used when assessing the level of impact and how it affects the asset. The level of impact will be rated on a 1-10 scale ,1 being the lowest and 10 being the highest.
" Creating a Risk Management Culture." Microsoft TechNet: Resources for IT Professionals. N.p., n.d. Web. 4 Aug. 2010. .
Risk is the possibility of injuries or accidents occurring in your settings. Every individual health and social care settings has its own hazards which poses a potential risk. Risk assessment must be use to evaluate and minimise the risk if they are inseparable from the person centred care of the user. The risk factors in the care setting could have psychological, social, financial and physical instabilities.
... recommendation is that better protection should be provided for the management of financial risk. Benkol could use the Net Present Value technique to cover that. Benkol also lacks a proper risk assessment method. Benkol does not use a risk assessment matrix, nor scenario analysis and probability analysis is done by the project manager using subjective assumptions. This can be refined by implementing proper probability analysis and risk assessment matrix.
National security in the United States is extremely important and requires extensive risk management measures including strategic, exercise, operational and capability-based planning, research, development, and making resource decisions in order to address real-world events, maintain safety, security and resilience (Department of Homeland Security [DHS], 2011). The national security and threat assessment process consists of identifying the risk and establishing an objective, analyzing the relative risks and environment, exploring alternatives and devising a plan of action for risk management, decision making and continued monitoring and surveillance (DHS, 2011). Identifying risks entails establishing a context to define the risk, considering related risks and varying scenarios, including the unlikely ones, which then leads to the analysis phase; gathering data and utilizing various methodologies and analysis data software systems to survey incidence rates, relative risks, prevalence rates, likelihood and probable outcomes (DHS, 2011). These two key phases lay the foundation to explore alternatives and devise action plans. Threats, vulnerabilities and consequences (TCV) are also a key component of many national security risk management assessments because it directly relates to safety and operation capabilities, but the text stress that it should not be included in the framework of every assessment because it is not always applicable (DHS, 2011).
Risk is characterized as an occasion that has a probability of happening, and could have either a positive or negative effect to a project ought to that risk occur. A risk may have at least one causes and, on the off chance that it happens, at least one effects. For example,
Principle of Security Management by Brian R. Johnson, Published by Prentice-Hall copyright 2005 by Pearson Education, Inc.
No firm can be a success without some form of risk management. Risk are the uncertainty in investments requiring an assessment. Risk assessment is a structured and systematic procedure, which is dependent upon the correct identification of hazards and an appropriate assessment of risks arising from them, with a view to making inter-risk comparisons for purposes of their control and avoidance (Nikolić and Ružić-Dimitrijevi, 2009). ERM is a practice that firms implement to manage risks and provide opportunities. ERM is a framework of identifying, evaluating, responding, and monitoring risks that hinder a firm’s objectives. The following paper is a comparison and evaluation to recommended practices for risk manage using article “Risk Leverage
These are the specific risks involved to a particular project or program. The organisations continuously undertakes specific projects, which should be managed with consistency with the legal obligations to be kept in mind. There are significant program management methodology which spell out the requirement and clear risk management approach within the project environment and align by the whole of the AS/NZS ISO 31000:2009 Risk management – Principles and guidelines.
Finally, we may say that it can be difficult to clearly separate risk from uncertainty. This is because the uncertainty is one part of the scope of risk. In other words, risk and uncertainty are closely linked to the context of risk management frameworks. Thus, it can be inferred that the effective use of risk management process frameworks particularly the COSO and the SHAMPU framework seem unlikely to rely on the ability to differentiate between risk and uncertainty. Although if the framework is able to perfectly differentiate between risk and uncertainty, it seems certain that an organization can appropriately deal with the potential issues.