Abstract
As the relevance of the digital economy increases, the need for secured cyberspace increases. Cyber threats are inescapable in digital progress. In the growth of cyber dominance, cybersecurity is necessary and very essential. Risk analysis is the process of assessing the likelihood of an adverse event occurring within the corporate, government, or environmental sectors. This chapter, therefore, explores the imperatives of risk analysis and asset management on cyber security in a technology-driven economy from the existing body of knowledge in the field. The chapter is divided into five sections, where the first section has to do with the introduction. The remaining four sections deal with the concepts of risk and risk analysis, asset management, factors determining attainment of continuous improvement of an asset performance management (APM) solution, cyber-crime and cyber-security, and conclusion and recommendations.
TopRisk And Risk Analysis
Risk is an exposure to the possibility of loss, injury, or other adverse or unwelcome circumstances; a chance or situation involving such a possibility. Management of risk within asset management is critical because asset managers are responsible for optimizing outcomes for the good of their organization, and therefore need to make judgements about which actions best achieve the right blend of outcomes based on organizational objectives.
To make these judgements, they need to predict how their actions will impact the future performance of the assets. They need to quantify both the probability of their actions (or inactions) causing a change in performance and then they need to determine the impact or consequences of that change in performance.
Risk = Probability X Consequence
(of failure) (of failure)
Risk analysis is the process of assessing the likelihood of an adverse event occurring within the corporate, government, or environmental sector. A project's likelihood of success or failure, the variation of portfolio or stock returns, the likelihood of future economic conditions, and the uncertainty of predicted cash flow streams are all examples of fundamental uncertainties that are studied through risk analysis.
To reduce potential unfavorable unanticipated outcomes, risk analysts frequently collaborate with forecasting experts. All businesses and people take risks; rewards or gains are less likely to occur without risk. The issue is that taking on too much risk can fail. By using risk analysis, it is possible to strike a balance between incurring risks and minimizing them. When considering risk, the following factors could be considered:
- 1.
A project, investment, or business may face a variety of risks that need to be identified, assessed, and mitigated.
- 2.
In quantitative risk analysis, the risk is assigned a numerical value using simulations and mathematical models.
- 3.
A person's subjective judgement is a key component of qualitative risk analysis, which uses it to create a theoretical model of risk for a specific scenario.
- 4.
Often, risk analysis is a combination of art and science.
Key Terms in this Chapter
Technology-Driven Economy: Technology-driven economies are economies driven by the potential of available technology.
Risk Analysis: Risk analysis is the process of assessing the likelihood of an adverse event occurring within the corporate, government, or environmental sectors.
Information Security: Information security is a broader category that safeguards all information assets, whether in hard copy or digital form and focuses on protecting computer systems from illegal access as well as from being otherwise damaged or rendered unavailable.
Cyber Security Framework: Cyber security framework is a set of rules and procedures designed to enhance a company's cyber security measures, not some flashy software application or hardware appliance.
Risk: Risk is an exposure to the possibility of loss, injury, or other adverse or unwelcome circumstances; a chance or situation involving such a possibility.
Enterprise Asset Management (EAM): Enterprise Asset Management (EAM) systems are asset information systems that support the management of an organization's assets.
Risk Assessment: Risk assessment is a process or method of Identifying hazards and risk factors that have the potential to cause harm (hazard identification). It is the process of analysing and evaluating the risk associated with that hazard (risk analysis, and risk evaluation).
IT Asset Management: IT asset management is the process of ensuring an organization’s assets are accounted for, deployed, maintained, upgraded, and disposed of when the time comes. It is the process of making sure that the valuable items, tangible, and intangible, in the organization are tracked and used.
Asset Management: Asset management is the practice of increasing total wealth over time by acquiring, maintaining, and trading investments that have the potential to grow in value.
Cybersecurity: Cybersecurity is the protection of internet-connected systems such as hardware, software, and data from cyber threats. The practice is used by individuals and enterprises to protect against unauthorized access to data centers and other computerized systems.
Risk Management: Risk management is the process of identifying, assessing, and controlling financial, legal, strategic, and security risks to an organization's capital and earnings.