How does a risk assessment function?

A risk assessment is a systematic process that involves identifying, analyzing, and evaluating potential risks that could negatively impact an organization’s data or operations. By focusing on the probability of different risks, a risk assessment helps organizations prioritize their efforts and make informed decisions about how to manage those risks effectively.

The process generally includes identifying the various risks that could affect the data, assessing the likelihood of each risk occurring, and evaluating the potential impact of those risks on the organization. This allows organizations to allocate resources appropriately to mitigate significant threats and manage vulnerabilities proactively. In essence, the core function of a risk assessment is to provide a detailed analysis of what risks are present, how likely they are to occur, and the severity of their potential consequences.

The other options do address important aspects of data management and security, but they do not encapsulate the primary function of a risk assessment. For example, identifying legal responsibilities is crucial for compliance but does not encompass risk analysis. Similarly, encrypting sensitive information is a specific security measure rather than an assessment process, and monitoring internet usage pertains to operational oversight rather than assessing risks.