For some organisations and sectors, security risk management is a mandatory compliance requirement. E.g.) An organisation would be unable to achieve ISO 27001 without security risk management.
All organisations face cyber security risks. Risk management enables organisations to define the roles and responsibilities for risk management, the methodology to follow and to track the organisation’s decisions and plans to treat or tolerate risks in accordance with a company’s risk appetite. The absence of a risk management process may influence business opportunities or cause concern for 3rd parties when responding to supply chain questionnaires, bids or RFIs.
An absence of security risk management may result in an organisation being more susceptible to security incidents, data loss, service outages and financial or reputational impacts.