Services for Security Risk Management

Risk Management –

The principles of risk management are applied to the management of security risks in order to manage security threats. It entails identifying risks (or risk causes), evaluating the efficacy of current controls to address those risks, figuring out the consequences of the risks, ranking the risks by likelihood and impact, categorizing the risks, and choosing an appropriate risk option or risk response. A global standard for risk management was created in The Netherlands in 2016. It was revised and given the name Universal Security Management Systems Standard 2017 in 2017.

Risk Classifications – External 

Strategic: Competition and customer demand.
Operational: Regulations, suppliers, and contract.
Financial: FX and credit.
Hazard: Natural disasters, cyber, and external criminal acts.
Compliance: New regulatory or legal requirements are introduced, or existing ones are changed, exposing the organization to a non-compliance risk if measures are not taken to ensure compliance.

Internal 

Strategic: R&D.
Operational: Systems and processes (H&R, Payroll).
Financial: Liquidity and cash flow.
Hazard: Safety and security; employees and equipment.
Compliance: Concrete or potential changes in an organization’s systems, processes, suppliers, etc. may create exposure to a legal or regulatory non-compliance.

Risk Potential – Risk Reduction

The potential of eradicating criminal opportunity or averting its production should be prioritized as the first option to be thought about. when the action does not result in the creation of additional factors or considerations that would increase the risk. For instance, stopping all cash flow from a retail location might make it impossible to steal money, but it would also make it impossible to run a business.

Risk Mitigation

The next stage is to reduce the chance of possible loss to the lowest level compatible with the function of the business when preventing or eliminating the criminal opportunity clashes with the ability to conduct business. In the aforementioned example, the use of risk reduction can lead to the company just retaining enough cash on hand to cover one day of operations.

Risk Dispersion

Risk spreading is used to protect assets that are still exposed after reduction and avoidance measures have been applied. Through the use of perimeter illumination, barred windows, and intrusion detection systems, this approach prevents loss or potential loss by increasing the likelihood that the culprit will be identified and apprehended before the crime is completed. The goal is to shorten the window of opportunity for thieves to steal assets and flee uncaught.

Risk Shifting

Insuring the assets or increasing pricing to cover the loss in the event of a criminal act are the two main ways to achieve risk transfer. Generally speaking, the cost of transferring risks is significantly lower when the first three phases have been correctly implemented.

Acceptance of Risk

The business must just accept all of the remaining risks as a necessary component of conducting business. Deductibles that were paid as part of the insurance coverage are included with these acceptable losses. Give us a call if you want to learn more about security risk management. We are a full-service security agency that operates in all 50 states and is accessible around the clock.