In its simplest terms, a risk assessment is a process to identify potential risks to an organization and the analysis of what could happen if an event occurs. Typically, risks would be categorized into high, medium, or low. Risk managers would initially target those areas identified as high risk and could also look at mitigating medium risks as well, providing staffing levels are adequate.
This activity will enable you to explain the concept of, and ways to identify, risk assessments.
Risk assessments need to be developed so that an organization can quickly identify where risks in the organization reside. A quantitative risk assessment model can be built that will assist in this task. Examine these events and write a short paper discussing the following:
Assess and describe what a risk assessment should include for an organization of your choice.
Develop and include in your paper a quantitative risk assessment model and describe how you would use it to identify that organization's risk. This model should include a detailed listing considering the potential impact and likelihood of an event occurring in the absence of any controls, the multiplication of which results in the inherent risk. Also consider any potential controls that the organization you chose may have and how that would impact the inherent risk. The residual risk is what remains after the inherent risk is adjusted for controls. The detailed listing you develop should include a discussion on how you would capture the risks as well as how you would identify them by risk level for emphasis.
Compose your paper in 4-5 pages (not including title and reference pages), double spaced, with 1-inch margins, following proper APA formatting. Include at least two resources (in addition to the course textbook) to support your materials. Be sure to cite appropriatel y and include a reference page for all resources used.