Published on November 8, 2023, 10:50 pm

We are all familiar with the concepts of risks and uncertainty. Risk quantification (RQ) is a process of evaluating identified risks and developing the data needed for making informed decisions about how to manage them. It involves assigning numerical values to the likelihood and impact of risks, helping prioritize them and determine the appropriate level of resources for mitigation.

On the other hand, risk assessment (RA) is the process of identifying and analyzing potential risks to an organization or system. It involves evaluating the likelihood and impact of different threats and vulnerabilities.

Jonathan Jackson, director of sales engineering APJ at BlackBerry, explains that risk quantification forms part of risk assessment. When considering whether an organization needs risk quantification as part of their overall assessment and management strategy, factors like significant changes to the business environment or operations should be taken into account.

Jackson emphasizes that not all risk quantification solutions are equal. The effectiveness and suitability of a particular solution depend on factors such as organization size, industry involvement, and complexity.

In evaluating a risk assessment solution, scope, accuracy, usability, flexibility, and cost should be considered. It is crucial for organizations to carefully evaluate and select an approach that meets their specific needs.

According to Jackson, any risk assessment undertaking should involve multiple stakeholders within the organization. While governance, risks, and compliance (GRC) are typically led by the chief risk officer, key stakeholders from various departments play important roles in managing risks.

Strong leadership direction from executives is also essential in fostering a culture of risk aversion within an organization through education, training, and ongoing management.

To gain deeper insights into risk quantification strategies in 2023 directly from Jonathan Jackson himself, tune in to PodChats for FutureCISO by clicking on the provided player.

In summary:
1. Risk quantification is the evaluation of identified risks through assigning numerical values to likelihoods and impacts.
2. Risk quantification may be triggered by significant changes in the business environment or operations.
3. Organizations should assess their specific needs to determine whether risk quantification is necessary.
4. Not all risk quantification solutions are equal, and factors like scope, accuracy, usability, flexibility, and cost should be considered in the evaluation process.
5. Multiple stakeholders within an organization should be involved in risk assessment efforts.
6. Executive leadership plays a crucial role in fostering a culture of risk aversion within an organization.

For more information on risk quantification strategies in 2023, visit FutureCIO website.

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