It is a key consideration in risk management strategies, where risks are weighed against the benefits and costs of mitigating them. _ Acceptable risk refers to the level of risk that an organization or individual is willing to tolerate in the context of security, operations, or financial decisions
• Organizations setting security policies that balance potential losses with operational efficiency, especially within the context of potential loss/disruption for IT systems.• Deciding which vulnerabilities need immediate attention versus those that can be tolerated based on risk assessment.
Should the risk materialize and a decision has to be made to determine mitigation strategies, factors such as breach severity, business significance, exposure to other IT resources and time should be considered. Overall, acceptable risk must consider both inherent and contextual factors for risk to be adequately assessed and accepted. Factors include potential financial loss, operational impact, regulatory requirements, and the likelihood of the risk materializing
The most common methods include assessing risk via quantitative, qualitative, threat-based, vulnerability and asset-based methods. Acceptable risk can be determined using risk assessment models that combine impact and likelihood metrics, often resulting in a risk score
Setting an acceptable risk level too high could result in significant financial or operational damage if a risk materializes, as mitigation efforts might be inadequate.
Our dedicated support team is ready to assist with any cybersecurity questions or concerns.
Reach out to us by phone, email, or through our online contact form for expert guidance and solutions.
