What is the purpose of a risk assessment?

The purpose of a risk assessment is to evaluate potential risks and their impact. This process involves identifying and analyzing factors that could negatively affect the organization's ability to conduct business. By understanding the various threats and vulnerabilities within the environment, organizations can prioritize their resources and efforts to mitigate the most significant risks effectively.

A risk assessment helps to inform decision-makers about the likelihood of various risks occurring and the potential consequences should those risks materialize. This enables organizations to develop appropriate strategies to manage those risks, whether through mitigation, transfer, acceptance, or avoidance. In essence, it serves as a foundational component of an organization's overall risk management strategy, guiding them in making informed decisions to protect their assets and maintain operational continuity.

This focus on understanding and managing risks is what differentiates a risk assessment from other actions, such as limiting user access, which is more about enforcing security policies rather than evaluating risks, or providing lists of approved software or reporting on hardware, which serve different operational functions.