What is Risk?

Understanding Risk

The possibility of damage or harm and the likelihood that damage or harm will be realized. Risk represents the potential for loss damage or adverse consequences resulting from threats exploiting vulnerabilities typically expressed as a function of threat likelihood and potential impact. Understanding and managing risk is the foundation of effective security programs. Risk management is central to frameworks like ISO 31000 NIST RMF FAIR and numerous regulatory requirements. Organizations manage risk through structured processes including identification analysis evaluation treatment monitoring and communication. For example a healthcare organization might implement a comprehensive risk management program that systematically identifies threats to patient data evaluates their likelihood and potential impact implements controls to reduce critical risks to acceptable levels continuously monitors the risk landscape and regularly reports risk status to leadership for informed decision-making. Related terms Risk management Threat Vulnerability Impact Likelihood Risk assessment Risk treatment Risk appetite.